The Conditional Convergence in TFP Levels. On the Relationship between TFP, Processes of Accumulation and Institutions

In this paper, we discuss the relationship between productivity, accumulation and institutions. We start from the idea that accumulation and productivity are connected by complex non-linear relations, which are amplified or attenuated by the system of rules that affects trade, decisions and preferences of economic actors. In order to show these connections, we have built a specific model that helps us shed some light on the ties involving this multi-dimensional relationship, which goes from institutions to the stock of physical and human capital and from this latter to productivity. On these ground, we propose a circular relationship between the existing literature on "barriers" and on "appropriability".