Journal Article
Twenty-Two Econometric Tests on the Gravitation and Convergence of Industrial Rates of Return in New Zealand and Taiwan
We test the hypotheses of industry return rates either gravitating around or converging towards a common value in Taiwan and New Zealand. We adopt various econometric approaches. The results are then nested in a meta-analytic framework together with those of the past literature. Various kinds of limitations to capital mobility can hamper the tendential equalization of return rates. Focusing on those arising from different innovation capabilities across industries can pave the way to collaboration between evolutionary and radical political economics.
Key Words
- capital mobility
- convergence
- gravitation
- Panel data
- return rates on regulating capital