Industrialization, Convergence, and Patterns of Growth

Abstract

Patterns of national growth rates against levels of per capita income seem to be best understood through the behavior of the relevant factors of growth. This paper describes patterns of growth as the sum of patterns in the capital accumulation rates and patterns in the pace of "industrialization' with development. In conjunction with the time series behavior of the variables, the postwar cross-country data suggest the following interpretation: as one country develops, the rate of capital accumulation, and hence the growth rate of income, tends to increase in general; but drastic industrialization can generate a hump in the growth rate during the course of development.