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A North-South evolutionary model

Author

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  • André Luiz Fernandes

Abstract

This work expands the classical Nelson and Winter model of Schumpeterian competition by including two sectors and a North-South dynamics, with a view to analyzing how different institutions and technological regimes affect the processes of convergence and divergence in the international economy. The results suggest that convergence may emerge out of the efforts for imitation in the South when the technological regime is cumulative. But when the regime is science-based, imitation is not enough for a successful catching-up. In this case convergence requires the South to invest in innovation as well. The work also analyses the robustness of the model results using Montecarlo. JEL Classification: O41, O33, F43.

Suggested Citation

  • André Luiz Fernandes, 2007. "A North-South evolutionary model," Brazilian Journal of Political Economy, Center of Political Economy, vol. 27(4), pages 633-650.
    • Handle: RePEc:ekm:repojs:v:27:y:2007:i:4:p:633-650:id:584
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    More about this item

    Keywords

    Evolutionary Model; Economic Growth; Innovation and Technologic Diffusion; Conditional Convergence;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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