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2 - Western Europe

Convergence and Divergence

from Part I - Regional Developments

Published online by Cambridge University Press:  03 June 2021

By
Paul Sharp
Edited by
Stephen Broadberry  and
Kyoji Fukao
Stephen Broadberry
Affiliation:
University of Oxford
Kyoji Fukao
Affiliation:
Hitotsubashi University, Tokyo
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Summary

This chapter considers the growth performance of western European countries since 1870, and relates this to the degree of openness. A theoretical explanation of why convergence is predicted by economic theory is presented and some statistics are presented on GDP per capita and the contributions of various factors to growth performance. Three periods are considered: 1870 until World War I; the interwar period; and after World War II. The first and the last are associated with globalization and convergence, whereas the interwar period witnessed increasing levels of economic isolation and lack of convergence. All western European countries are much richer today than they were in 1870, but some countries have performed much more strongly than others. Over- and underperforming countries, whose growth performances were markedly different from what might be expected from their initial levels of income, are highlighted, and possible interpretations suggested.

Keywords

Beta convergencesigma convergenceopennessoverperformanceunderperformancewestern Europe.
Type
Chapter
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The Cambridge Economic History of the Modern World , pp. 48 - 73
Publisher: Cambridge University Press
Print publication year: 2021

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  • Western Europe
  • Edited by Stephen Broadberry, University of Oxford, Kyoji Fukao, Hitotsubashi University, Tokyo
  • Book: The Cambridge Economic History of the Modern World
  • Online publication: 03 June 2021
  • Chapter DOI: https://doi.org/10.1017/9781316671603.003
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  • Western Europe
  • Edited by Stephen Broadberry, University of Oxford, Kyoji Fukao, Hitotsubashi University, Tokyo
  • Book: The Cambridge Economic History of the Modern World
  • Online publication: 03 June 2021
  • Chapter DOI: https://doi.org/10.1017/9781316671603.003
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  • Western Europe
  • Edited by Stephen Broadberry, University of Oxford, Kyoji Fukao, Hitotsubashi University, Tokyo
  • Book: The Cambridge Economic History of the Modern World
  • Online publication: 03 June 2021
  • Chapter DOI: https://doi.org/10.1017/9781316671603.003
Available formats
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