Trade, convergence, and globalisation: The dynamics of the international income distribution, 1950–1998

Great Divergence and Great Convergence

“…Even at that time the absolute majority of Western economists seem to have been in unanimous agreement over the absence of absolute convergence across the world (see, e.g., Sadik 2008 ;Epstein et al 2007 ;Seshanna and Decornez 2003 ;Workie 2003 ;Canova and Marcet 1995 ;Durlauf and Johnson 1995 ;Desdoigts 1994 ;Paap and van Dijk 1994 ). Thus, Sachs et al noted in 1995Sachs et al noted in that in 1970Sachs et al noted in -1995 there had been no overall tendency for the poorer countries to catch up, or converge, with the richer countries.…”

“…Numerous students shared the point of view on the absence of absolute convergence throughout the countries of the world (see, e.g., Sadik 2008 ;Epstein et al 2007 ;Seshanna and Decornez 2003 ;Workie 2003 ;Canova and Marcet 1995 ;Durlauf and Johnson 1995 ;Desdoigts 1994 ;Paap and van Dijk 1994 ).…”

A New Interpretation of the Distance Puzzle Based on Geographic Neutrality

“…An openness to trade is not directly observable, and there is no theoretical agreement on or accepted standard for how to measure it (Epstein, Howlett, and Schulze 2007). The literature has proposed and evaluated alternative measures to capture this concept, which were summarized by Proudman, Redding, and Bianchi (1997), among others.…”

Review of periodical literature published in 2007

“…Nonetheless, he thinks the exercise could help us understand better how institutions promote growth. A fascinating study by Epstein et al. suggests that golden age trade patterns helped to create middle‐ and high‐income clusters of economies, but that similar trade patterns (dominated by the rich economies) do not seem to explain their perpetuation thereafter. Crafts explores the way in which America's large initial postwar productivity advantage was eroded by rapid European catch‐up growth, evaluating claims that the latter was subsequently undermined by weak competition and by excessive regulation and taxation.…”