Did Globalization Lead to Segmentation? Identifying Cross-Country Growth Regimes in the Long-Run
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Did Globalization Lead to Segmentation? Identifying Cross-Country Growth Regimes in the Long-Run. / Di Vaio, Gianfranco; Enflo, Kerstin Sofia.
Department of Economics, University of Copenhagen, 2009.Research output: Working paper
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TY - UNPB
T1 - Did Globalization Lead to Segmentation?
T2 - Identifying Cross-Country Growth Regimes in the Long-Run
AU - Di Vaio, Gianfranco
AU - Enflo, Kerstin Sofia
N1 - JEL Classification: C52, N10, O47
PY - 2009
Y1 - 2009
N2 - Economic historians have stressed that income convergence was a key feature of the 'OECD-club' and that globalization was among the accelerating forces of this process in the long-run. This view has however been challenged, since it suffers from an ad hoc selection of countries. In the paper, a mixture model is applied to a sample of 64 countries to endogenously analyze the cross-country growth behavior over the period 1870-2003. Results show that growth patterns were segmented in two worldwide regimes, the first one being characterized by convergence, and the other one denoted by divergence. Interestingly, when three historical epochs are analyzed separately (1870-1913; 1913-1950; and 1950-2003), the dynamics which come to dominate over the whole period emerged only during the post-1950 years. In contrast, the First Global Wave was marked by global divergence. Therefore, history does not provide unambiguous evidence about globalization and convergence.
AB - Economic historians have stressed that income convergence was a key feature of the 'OECD-club' and that globalization was among the accelerating forces of this process in the long-run. This view has however been challenged, since it suffers from an ad hoc selection of countries. In the paper, a mixture model is applied to a sample of 64 countries to endogenously analyze the cross-country growth behavior over the period 1870-2003. Results show that growth patterns were segmented in two worldwide regimes, the first one being characterized by convergence, and the other one denoted by divergence. Interestingly, when three historical epochs are analyzed separately (1870-1913; 1913-1950; and 1950-2003), the dynamics which come to dominate over the whole period emerged only during the post-1950 years. In contrast, the First Global Wave was marked by global divergence. Therefore, history does not provide unambiguous evidence about globalization and convergence.
M3 - Working paper
BT - Did Globalization Lead to Segmentation?
PB - Department of Economics, University of Copenhagen
ER -
ID: 11954239