Journal Article

Twenty-Two Econometric Tests on the Gravitation and Convergence of Industrial Rates of Return in New Zealand and Taiwan


  • Vaona
  • A.
Publication Date

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.


JEL Classification
L16, L60, L19, L70, L80, L90, B51, B52

Key Words

  • capital mobility
  • convergence
  • gravitation
  • Panel data
  • return rates on regulating capital