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Economic Integration and Convergence: and Historical Perspective

Author

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  • O'Rourke, Kevin H.

    (University College, Dublin)

Abstract

Theory is ambiguous as to how globalization influences the relative performances of rich and poor countries. This paper surveys some recent literature on the historical links between international commodity and factor market integration and convergence. Focussing on the late 19th century, a period both of globalization and convergence, it shows that trade had and important impact on factor prices in some countries, just as Heckscher and Ohlin would have predicted. Migration was however a more important force for convergence during this period, while international capital flows led to both convergence and divergence. The analysis suggests that more attention should be paid to open economy forces when discussing convergence.

Suggested Citation

  • O'Rourke, Kevin H., 1999. "Economic Integration and Convergence: and Historical Perspective," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 14, pages 133-168.
    • Handle: RePEc:ris:integr:0101
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    Cited by:

    1. Costas N. Kanellopoulos, 2012. "The Size and structure of uninsured employment," Economic Bulletin, Bank of Greece, issue 37, pages 23-41, December.
    2. Petros M. Migiakis, 2012. "Reviewing the proposals for common bond issuances by the euro-area sovereign under a long-term perspective," Economic Bulletin, Bank of Greece, issue 37, pages 43-54, December.
    3. Zacharias Bragoudakis & Dimitrios Sideris, 2012. "Do retail gasoline prices adjust symmetrically to crude oil price changes? the case of the Greek oil market," Economic Bulletin, Bank of Greece, issue 37, pages 7-21, December.

    More about this item

    Keywords

    Economic; Integration;

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration

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