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Long waves, technological innovation, and relative decline

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Author Info
Thompson, William R.
Abstract

The popularity of Kondratieff long waves fluctuates according to the economic climate. Periods of slow growth help make long wave explanations more attractive. While their popularity may oscillate, the evidence associated with the existence of long waves continues to be disputed. A review of the pertinent theoretical literature suggests that one reason for the disagreements about the existence of long waves is that much of the available evidence does not correspond as closely as it might to the theoretical foci. A new data series, one based on leading sector production growth rates from 1760 to 1985, is developed to remedy this lack of correspondence. The appropriate analysis of this series requires that particular attention be paid to the rise and relative decline of the world economy's lead state. The empirical outcome provides a close match to the long wave chronology developed by Joseph Schumpeter, Simon Kuznets, and J. J. Van Duijn. While this approach falls short of bringing closure to many of the theoretical and empirical questions concerning long waves, it does establish a solid empirical foundation for further analyses. The article concludes with some observations on the long wave implications for the relative economic decline of Britain in the nineteenth century and the United States in the twentieth century.

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Publisher Info
Article provided by Cambridge University Press in its journal International Organization.

Volume (Year): 44 (1990)
Issue (Month): 02 (March)
Pages: 201-233
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Handle: RePEc:cup:intorg:v:44:y:1990:i:02:p:201-233_03

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  1. Silverberg,Gerald, 2003. "Long Waves: Conceptual, Empirical and Modelling Issues," Research Memoranda 015, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
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