Economic Convergence and Economic Policies

49 Pages Posted: 17 Aug 2000

See all articles by Jeffrey D. Sachs

Jeffrey D. Sachs

Columbia University - Columbia Earth Institute; National Bureau of Economic Research (NBER)

Andrew M. Warner

Harvard University - Center for International Development (CID)

Multiple version iconThere are 2 versions of this paper

Date Written: February 1995

Abstract

Many of the crucial debates in development economics are encapsulated in the question of economic convergence. Is there a tendency for the poorer countries to grow more rapidly than the richer countries, and thereby to converge in living standards? Some recent research on endogenous growth has emphasized increasing returns as a possible reason not to expect convergence. Other research has suggested that convergence may be achieved only after poor countries attain a threshold level of income or human capital. This paper presents evidence that a sufficient condition for higher-than-average growth of poorer countries, and therefore convergence, is that poorer countries follow reasonably efficient economic policies, mainly open trade and protection of private property rights.

Suggested Citation

Sachs, Jeffrey D. and Warner, Andrew M., Economic Convergence and Economic Policies (February 1995). NBER Working Paper No. w5039. Available at SSRN: https://ssrn.com/abstract=225818

Jeffrey D. Sachs (Contact Author)

Columbia University - Columbia Earth Institute ( email )

314 Low Library
535 West 116th Street, MC 4327
New York, NY 10027
United States
212-854-8704 (Phone)
212-854-8702 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Andrew M. Warner

Harvard University - Center for International Development (CID) ( email )

One Eliot Street Building
79 JFK Street 79 John F. Kennedy Street
Cambridge, MA 02138
United States
617-495-3628 (Phone)
617-495-0712 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
136
Abstract Views
3,008
rank
133,745
PlumX Metrics