Certain stylized facts are common among successful economic latecomers: an inverse U-shaped gross domestic product and capital per capita growth rate, high growth rates during the catch-up period, and rapid structural changes. This paper, for the first time, proposes a general equilibrium...

Successful economic latecomers have certain stylized facts: an inverse U-shaped growth rate, high growth rates of per capita output with high capital returns, and rapid structural changes. In this paper, we document for the first time a catch-up cycle that successful latecomers likely...

This paper establishes a theoretical framework addressing the long-debated issue of efficiency and equity. Empirical evidence shows that a comparative-advantage-following development strategy promotes growth and narrows the income gap, achieving both efficiency in production and equity in income...