Convergence, Divergence and Changing Trade Patterns
Wälde, Klaus
1. Introduction and overview Until still few years ago, economic growth theory (going back to Solow, 1956, for an introduction cf. Burmeister and Dobell, 1970) predicted convergence of both growth rates and level of per capita income of economies which share identical preferences, technologies and same population growth rates, independently of initial conditions. Countries with a low capital stock grow faster than those with a higher capital s...