DP1586 Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs

Author(s): Danny Quah

Publication Date: March 1997

Keyword(s): Conditioning , Convergence , Distribution Dynamics , Income Distribution , Inequality , Space , Trade , Twin Peaks

JEL(s): C13 , C33 , F43 , O30

Programme Areas: International Macroeconomics

Link to this Page: www.cepr.org/pubs/dps/DP1586.asp

This paper studies cross-country patterns of economic growth from the viewpoint of income distribution dynamics. Such a perspective raises new empirical and theoretical issues in growth analysis: the profound empirical regularity is an ‘emerging twin peaks’ in the cross-sectional distribution, not simple patterns of convergence or divergence. The theoretical problems raised concern interaction patterns among sub-groups of economies, not only problems of a single economy’s accumulating factor inputs and technology for growth.