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Convergence empirics across economies with (some) capital mobility

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Abstract

This paper uses a model of growth and imperfect capital mobility across multiple economies to characterize the dynamics of (cross-country) income distributions. This allows convenient study of the convergence hypothesis, and reveals, where appropriate, polarization and clumping within subgroups. The data show little cross-country convergence; instead, the important features are persistence, immobility, and polarization, exemplified by “convergence club” or “twin peaks” dynamics.

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  1. Economics Department, London School of Economics, WC2A 2AE, London, United Kingdom

    Danny T. Quah

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Quah, D.T. Convergence empirics across economies with (some) capital mobility. J Econ Growth 1, 95–124 (1996). https://doi.org/10.1007/BF00163344

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