Download this Paper Open PDF in Browser

Sources of Convergence in the Late Nineteenth Century

33 Pages Posted: 3 Oct 1999  

Alan M. Taylor

University of California, Davis - Department of Economics; University of Virginia - Department of Economics; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Date Written: October 1996

Abstract

Although the empirical growth literature has yielded many findings on postwar convergence patterns, it has had little to say about the determinants of convergence in earlier epochs. This paper investigates convergence for group of seven countries during the period 1870-1914, the last great phase of global convergence before the present postwar era. A standard empirical growth model, the Augmented Solow Model, which includes physical and human capital accumulation, proves unsatisfactory in this setting. Its shortcomings appear to lie in a failure to control for changes in land endowments, a feature of the endogenous frontier dynamics of the period. An alternative neoclassical open-economy factor accumulation model is proposed, which admits capital and labor migration, and may be extended to include a moving frontier. The model explains the observed convergence pattern in the sample, and suggests that factor accumulation patterns were the prime sources of labor productivity convergence from 1870 to 1914. The analysis gives little role to human capital, trade, or technological catch-up as important convergence mechanisms in this group of countries during the era studied. Since factor accumulation was influenced heavily by factor migration in the late nineteenth century, the findings also point to the limited use of conventional closed-economy growth models in this historical setting.

Suggested Citation

Taylor, Alan M., Sources of Convergence in the Late Nineteenth Century (October 1996). NBER Working Paper No. w5806. Available at SSRN: https://ssrn.com/abstract=5149

Alan M. Taylor (Contact Author)

University of California, Davis - Department of Economics ( email )

One Shields Drive
Davis, CA 95616-8578
United States
530-752-1572 (Phone)
530-752-9382 (Fax)

HOME PAGE: http://www.econ.ucdavis.edu/faculty/amtaylor/

University of Virginia - Department of Economics ( email )

P.O. Box 400182
Charlottesville, VA 22904-4182
United States
(434)-924-3177 (Phone)
(434)-982-2904 (Fax)

HOME PAGE: http://people.virginia.edu/~amt7u

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

HOME PAGE: http://nber.org

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

HOME PAGE: http://cepr.org

Paper statistics

Downloads
28
Abstract Views
733