Regimes of Growth and Economic Integration. Why Poor Countries Cannot Join the "Club" of the Rich?
The author argues that different regimes of growth experienced by rich and poor economies create barriers to global economic integration through the world capital market. The lack of capital flows from rich to poor countries is explained by the heterogeneity of these countries in terms of the engine of growth. The pattern of integration is determined for an open economy by its initial ratio of knowledge to assets: if it is high, the economy is booming, otherwise it grows gradually. This is an implication of the comparative advantage principle: a capital-scarce country attracts new investment at the initial stage of integration, while a capital-redundant country exports capital at this stage.
Russia, economic growth, integration, international capital market, club convergence
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