IDEAS home Printed from https://ideas.repec.org/a/ier/iecrev/v37y1996i3p531-51.html
   My bibliography  Save this article

Income Convergence within and between Countries

Author

Listed:
  • Fischer, Ronald D
  • Serra, Pablo J

Abstract

The authors study how trade changes the rate of income convergence within and between countries in a model of endogenous growth. An externality in the production of human capital implies that inequality slows down growth under autarky. Eventually incomes converge, raising the growth rate. Trade accelerates (slows down) growth and the rate of income convergence in the poor (rich) country. In the long run, trade ensures that countries grow at the same rate and that the ratio of their incomes tends to one. Trade pattern reversals are possible since the initially wealthy country may be overtaken by the poor country. Copyright 1996 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Suggested Citation

  • Fischer, Ronald D & Serra, Pablo J, 1996. "Income Convergence within and between Countries," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(3), pages 531-551, August.
    • Handle: RePEc:ier:iecrev:v:37:y:1996:i:3:p:531-51
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yoshiaki Sugimoto, 2003. "Inequality, Growth, and Overtaking," Data 0304001, University Library of Munich, Germany.
    2. Epstein, Philip & Howlett, Peter & Schulze, Max-Stephan, 2004. "Trade, convergence and globalisation: the dynamics of change in the international income distribution, 1950-1998," Economic History Working Papers 13295, London School of Economics and Political Science, Department of Economic History.
    3. Saccone Donatella, 2008. "Economic openness, skill demand and skill supply in three archetypes of developing countries: a theoretical and empirical investigation," Department of Economics and Statistics Cognetti de Martiis. Working Papers 200813, University of Turin.
    4. Epstein, Gil S. & Spiegel, Uriel, 2001. "Natural inequality, production and economic growth," Labour Economics, Elsevier, vol. 8(4), pages 463-473, September.
    5. Viaene, J.-M. & Zilcha, I., 2001. "Human Capital Formation, Income Inequality and Growth," Papers 2001-13, Tel Aviv.
    6. Haris Munandar, 2008. "Heterogeneous Agents, Human Capital Formation and International Income Inequality," Tinbergen Institute Discussion Papers 08-015/2, Tinbergen Institute.
    7. Sugimoto, Yoshiaki, 2006. "Inequality, Growth, And Overtaking," Macroeconomic Dynamics, Cambridge University Press, vol. 10(5), pages 625-651, November.
    8. Cabral, René & López Cabrera, Jesús Antonio & Padilla, Ramón, 2020. "Absolute convergence in manufacturing labour productivity in Mexico, 1993–2018: A spatial econometrics analysis at the state and municipal level," Estudios y Perspectivas – Sede Subregional de la CEPAL en México 46492, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    9. Epstein, Philip & Howlett, Peter & Schulze, Max-Stephan, 2007. "Trade, convergence, and globalisation: The dynamics of the international income distribution, 1950-1998," Explorations in Economic History, Elsevier, vol. 44(1), pages 100-113, January.
    10. Viaene, Jean-Marie & Zilcha, Itzhak, 2002. "Capital markets integration, growth and income distribution," European Economic Review, Elsevier, vol. 46(2), pages 301-327, February.
    11. Das, Satya P., 2006. "Trade, skill acquisition and distribution," Journal of Development Economics, Elsevier, vol. 81(1), pages 118-141, October.
    12. Ben Fine, 1998. "Endogenous Growth Theory: A Critical Assessment," Working Papers 80, Department of Economics, SOAS University of London, UK.
    13. Mustafa Zuhal, 2023. "Technological Convergence in Emerging Economies: An Investigation with Unit Root Tests," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 10(2), pages 567-586, July.
    14. Yoshiaki Sugimoto, 2005. "Inequality, Growth, and Overtaking," Development and Comp Systems 0508012, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ier:iecrev:v:37:y:1996:i:3:p:531-51. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley-Blackwell Digital Licensing or the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/deupaus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.