This paper proposes a model to describe the evolution of real gross
domestic product (GDP) in the world economy that is intended to
apply to all open economies. The parameters of the model are calibrated
using evidence from Sachs and Warner on economies classed
as open, from Parente and Prescott on economies that have successfully
begun to develop, and from Kuznets and the World Bank on the
employment share of agriculture in various times and places. The
theory predicts convergence of the income levels and growth rates in
the open economies and has strong but reasonable implications for
transition dynamics. (JEL F41, O33, O47)
Lucas, Robert E.
"Trade and the Diffusion of the Industrial Revolution."
American Economic Journal: Macroeconomics,
Open Economy Macroeconomics
Technological Change: Choices and Consequences; Diffusion Processes
Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence