Is convergence a spontaneous process? The experience of Spain, Portugal and Greece
OECD Economic Studies No. 16, Spring 1991. Levels of productivity in the OECD countries have become more uniform since the early 1960s; however, the process is uneven and hard to explain from the theoretical point of view. In neo-classical analysis of growth, catch-up occurs spontaneously as a result of the spread of technological progress and capital accumulation. In this paper, developments in three southern European countries are discussed in an effort to throw some light on the factors involved. Catch-up appears not to be spontaneous; the acquisition of technology and efficient capital accumulation depend largely on the degree of development of market mechanisms and the quality of social and economic infrastructures.
Long abstract
