We offer a duality-based methodology for incorporating multi-sector effects of international trade into open economy macroeconomic models, developing the concepts of the dynamic factor price equalization set and the integrated intertemporal equilibrium. Under this approach, the aggregate...

As China becomes more closely entwined with the US, positive shocks in the US translate into positive outcomes for China, but the extent of gain for the US during the convergence process is less clear. We develop an empirical framework of two interacting open economies in which Chinese GDP per...

Economic convergence is an important topic in modern Macroeconomics. Economic convergence refers to the tendency of per capita income of countries (regions) to approach their steady-state value. Two types of convergence are identified in the literature: Conditional and Absolute Convergence. This...

This paper uses the adaptive LASSO estimator to determine the variables important for economic growth. The adaptive LASSO estimator is a computationally very simple procedure that performs at the same time both consistent parameter estimation and model selection. The methodology is applied to...

A quarter-century after reunification, labor productivity in eastern Germany continues to lag systematically behind the West. Denison-Hall-Jones point-in-time estimates point to large gaps in total factor productivity as the proximate cause, and auxiliary measurements which do not rely on...

Using U.S. interstate banking deregulations, we identify the effect of banks' prior to market-entry industry exposures on the state-level manufacturing sector growth. Examining industry value added, gross operating surplus, total compensation, number of employees, output per employee and wages,...

Early, the convergence theory was suggestively expressed in the Solow model. This can be shown in line with the fact that while economic development is advancing (expressed by the income per capita growth), on long run there is a general convergence process among countries. Generally, empirical...

Coming from standard economic growth theory and empirical evidences, we concentrated on the convergence process as a result of structural changes in economy. We investigate the differences among countries in EU in terms of the share in total economy of main sectors. Then, based on the spatial...

In examining some big questions on African development, we provide evidence that dynamics of some development indicators could support both endogenous and neoclassical growth theories in the convergence debate. This paper investigates convergence in real per capita GDP and inequality adjusted...

Growth dynamics are remarkably heterogeneous, in particular when one focuses on developing countries. Economic miracles and failures are embedded within extended phases of either growth or decline. We propose a methodology and a taxonomy that will characterize countries' growth patterns on the...