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Telecommunications, Factor Substitution And Economic Growth

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  • FRANCIS J. CRONIN
  • ELISABETH COLLERAN
  • MARK GOLD
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    Abstract

    De La Grandville (1989) suggests that large elasticities of substitution between factor inputs and a change in relative prices might (i) explain historical economic growth in developing countries and (ii) account for the varying growth among sectors within economies undergoing technological change. Yuhn (1991) supports de La Grandvilles first hypothesis in his finding that Korea's economic growth relative to the United States, over a given interval, could be explained by the higher elasticities of substitution between labor and capital in Korea relative to those of the United States. This paper explores de La Grandville's second hypothesis with respect to telecommunications. Copyright 1997 Western Economic Association International.

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    Bibliographic Info

    Article provided by Western Economic Association International in its journal Contemporary Economic Policy.

    Volume (Year): 15 (1997)
    Issue (Month): 3 (07)
    Pages: 21-31

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    Handle: RePEc:bla:coecpo:v:15:y:1997:i:3:p:21-31

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    Cited by:
    1. E. et al. Saltari, 2011. "The impact of ICT on the Italian productivity dynamics," Working Papers 149, University of Rome La Sapienza, Department of Public Economics.
    2. André Mollick, 2011. "The world elasticity of labor substitution across education levels," Empirical Economics, Springer, vol. 41(3), pages 769-785, December.
    3. Olivier de La Grandville & Rainer Klump, 2000. "Economic Growth and the Elasticity of Substitution: Two Theorems and Some Suggestions," American Economic Review, American Economic Association, vol. 90(1), pages 282-291, March.

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