Factor Mobility and Income Growth: Two Convergence Hypotheses / Assaf Razin, Chi-Wa Yuen.

Format:

Book

Author/Creator:

Razin, Assaf.

Contributor:

National Bureau of Economic Research.

Yuen, Chi-Wa.

Series:

Working Paper Series (National Bureau of Economic Research) no. w5135.

NBER working paper series no. w5135

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Factor Mobility and Income Growth

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1995.

Summary:

While technologies and policy fundamentals are presumably different internationally, inducing differences in growth rates, capital mobility is shown to be a powerful force in achieving complete growth rate equalization across countries. We provide evidence in support of this effect, showing that restrictions on capital flows tend to make individual country growth rates more divergent. In the context of regional growth, however, labor mobility is shown to be capable of generating income level equalization across regions in the presence of knowledge spillovers. Some supporting evidence is found for this effect, showing that restrictions on labor flows tend to make individual region/country per capita income more divergent.

Notes:

Print version record

May 1995.