Growth and convergence/divergence in productivity under balance-of-payments constraint

Esteban Pérez Caldentey, Anesa Ali
2011 Investigacion Economica  
<p class="p1">This paper presents a model of convergence/divergence in productivity for</p><p class="p1">two economies of different size and development. More precisely the model</p><p class="p1">postulates the existence of leader and follower economies. The leader has</p><p class="p1">higher levels of productivity and is technologically more advanced. The</p><p class="p1">follower economy is closely linked to the leader economy. Finally, the leader</p><p class="p1">economy issues the
more » ... ssues the international reserve currency.</p>
doi:10.22201/fe.01851667p.2011.275.24261 fatcat:2frko4k73negjgfklckilmdapi