Convergence in a Model with Technological Diffusion and Capital Mobility,” Economic Modelling, forthcoming

This paper presents an open-economy model with technological diffusion and adjustment costs for capital investment. For undercapitalized economies, convergence is fast initially, despite the fact that it is slow asymptotically. The recent growth records of some transition countries are consistent with this prediction. 2002 Elsevier Science B.V. All rights reserved