Growth and Resilience Theory: A new way of conceptualising convergence dynamics.
Recent studies have highlighted how building resilience to ‘shrinking’ episodes, as opposed to increasing growth rates, appears to be the missing piece of the puzzle when it comes to between-country income convergence. All economies seem to be able to grow, but few countries have been able to drastically improve their shrinking patterns, which has underpinned the divergence often argued in literat