Factor mobility and income growth: Two convergence hypotheses

Assaf Razin*, Chi Wa Yuen

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


While technologies and policy fundamentals are presumably different internationally, inducing differences in growth rates, capital mobility can be a powerful force in equalizing output growth rates across countries. The paper provides some indirect evidence in support of this effect. In the context of regional growth, however, labor mobility can potentially equalize income levels across regions in the presence of human capital externalities. Supporting evidence is found for this effect, revealing that restrictions on labor flows tend to make per capita incomes more divergent across nations and/or regions.

Original languageEnglish
Pages (from-to)171-190
Number of pages20
JournalReview of Development Economics
Issue number2
StatePublished - 1997


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