According to New Growth Theory one can not rely on the convergence mechanisms inherent in traditional neoclassical … constant returns to scale models. Convergence as well as divergence is possible, in general, depending on the assumptions about … conditions divergence, convergence or a stable centre-periphery structure emerge. The model allows for different degrees of …

-economy exogenous growth model into a multi-country, open-economy endogenous growth model. Nevertheless, the conditional convergence and …

In models in which convergence in income levels across closed countries is driven by faster accumulation of a … productive factor in the poorer countries, opening these countries to trade can stop convergence and even cause divergence. We …. Divergence can occur for parameter values that would imply convergence in a world of closed economies and vice versa. Second …

the phenomenon of the Great Divergence in the 19th century. It is also consistent with evidence of club convergence in the …

This paper derives a convergence equation for a world integrated by trade. We find that factor price equalization … reduces the rate of income convergence among economies with identical preferences and identical technologies. This finding … integrated world model can explain low rates of convergence frequently observed in empirical studies without resorting to a large …