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Technological Integration and Income Gaps

Author

Listed:
  • Carlos Humberto Ortiz

    (Economics Departament of Universidad del Valle)

  • Javier Andrés Castro

    (Economics Departament of Universidad del Valle (Cali, Colombia))

Abstract

Leontief (1963) claimed that underdeveloped countries are poor because they are by far less economically diversified. This paper shows that a general equilibrium model with a stable input-output structure and a productivity externality due to input diversification may be consistent with Leontief´s hypothesis. An open economy version of the model yields the possibility of breaking the factor price equalization theorem so that developed economies enjoy higher capital remuneration and higher income level. Some empirical evidence on the relationship between technological integration and real income is provided.

Suggested Citation

  • Carlos Humberto Ortiz & Javier Andrés Castro, 2008. "Technological Integration and Income Gaps," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 68, pages 217-247, Enero-Jun.
    • Handle: RePEc:lde:journl:y:2008:i:68:p:217-247
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    References listed on IDEAS

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    6. Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," NBER Working Papers 3577, National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:

    1. Ortíz Quevedo, Carlos Humberto & Salazar Juan David, 2014. "Brasil como horizonte: mayor ingreso y mayor crecimiento económico para Colombia," Documentos de Trabajo 11033, Universidad del Valle, CIDSE.
    2. Carlos Humberto Ortiz & Diana Marcela Jiménez & María Liliam Jaramillo, 2019. "Productive diversification and structural change in closed and open economies," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 91, pages 11-39, Julio - D.
    3. Ortíz, Carlos Humberto, 2013. "Economic growth consequences of structural stagnation: A two-sector model of productive diversification," Revista Lecturas de Economía, Universidad de Antioquia, CIE, issue 78, pages 73-113, May.
    4. Ortiz, Carlos Humberto & Jiménez, Diana Marcela & Jaramillo, María Liliam, 2019. "Diversificación productiva y cambio estructural en economías cerradas y abiertas," Revista Lecturas de Economía, Universidad de Antioquia, CIE, issue 91, pages 1-29, July.
    5. Héctor Romero-Ramírez, 2023. "The trade dependence of Mexico and Canada towards the USA: An input-output approach (1965-1990)/La dependencia comercial de México y Canadá hacia los Estados Unidos: un enfoque de insumo-producto," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 38(2), pages 293-316.
    6. Edgar Vicente MARCILLO YÉPEZ, 2012. "Cambio estructural y demanda de trabajo calificado en Colombia en el periodo 1950 - 2007," Archivos de Economía 10098, Departamento Nacional de Planeación.

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    More about this item

    Keywords

    input-output; technological integration; income gaps; asymmetric technological structures; factor price equalization;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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