Using newly developed econometric techniques, Pedroni and Yao (2006) show that China has been experiencing regional income divergence since the Reform Period, and that traditional explanations explaining divergence are insufficient. This paper considers the role of labor mobility in the context of endogenous growth with positive externalities to human capital. Using provincial level data on inc...

Abstract The relationship between income and growth rates has been an elementary problem of research on economic convergence. In the present paper, we study growth-income paths in a new perspective. We assess similarities transitional trajectories with use novel concept-based model. Further, group economies basis assessed evaluate within-group relationships. obtained results point to distinct p...

This paper continues the study, initiated by Cole and Fleischer in [Cole and Fleischer 2008], of the behavior of a tatonnement price update rule in Ongoing Fisher Markets. The prior work showed fast convergence toward an equilibrium when the goods satisfied the weak gross substitutes property and had bounded demand and income elasticities. The current work shows that fast convergence also occur...

This paper shows that growth and income distribution dynamics are closely linked through occupation, financial intermediation, and education. We use the micro data from Thailand for 1976-1996. The compositional changes across these characteristics account for half of the Thai inequality increase and forty percent of the Thai growth and poverty reduction. Financial deepening and educational expa...

This paper derives a convergence equation for a world integrated by trade. Factor price equalization induced by trade reduces saving in capital-scarce economies, while it exercises the opposite effect in capital-abundant economies. Thus income convergence among parametrically identical economies is slower in a world integrated by trade than in a world of autarkic economies. Under standard param...

Recent research has suggested the use of binary and multi-annual rank concordance indices as measures of β-convergence. Using numerical analysis, it is shown that this approach has severe limitations. In particular, it is shown that hypothesis testing based upon the binary index possesses an inherent bias towards non-rejection of the null, leading to spurious detection of β-convergence. The pro...

The majority of the studies on regional convergence ignore the spatial characteristics of the problem. In a recent paper Rey and Montouri (1999) considered the issue of income regional convergence on US under the spatial econometric perspective. The present paper follows the Rey and Montouri’s (1999) approach and introduces some spatial econometric techniques for convergence among Brazilian sta...

The “middle-income trap” is the phenomenon of hitherto rapidly growing economies stagnating at middle-income levels and failing to graduate into the ranks of high-income countries. In this study we examine the middle-income trap as a special case of growth slowdowns, which are identified as large sudden and sustained deviations from the growth path predicted by a basic conditional convergence f...