Technological Integration and Income Gaps
AbstractLeontief (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.
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Bibliographic InfoArticle provided by Universidad de Antioquia, Departamento de Economía in its journal LECTURAS DE ECONOMÍA.
Volume (Year): (2008)
Issue (Month): 68 (Enero-Junio)
Postal: Lecturas de Economía, Departamento de Economía, Calle 67, 53-108, Medellin 050010, Colombia.
Find related papers by 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, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
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- repec:fth:stanho:e-92-3 is not listed on IDEAS
- Jeffrey D. Sachs & Andrew M. Warner, 1995.
"Natural Resource Abundance and Economic Growth,"
NBER Working Papers
5398, National Bureau of Economic Research, Inc.
- Ortíz Quevedo, Carlos Humberto & Salazar Juan David, 2014. "Brasil como horizonte: mayor ingreso y mayor crecimiento económico para Colombia," DOCUMENTOS DE TRABAJO-CIDSE 011033, UNIVERSIDAD DEL VALLE - CIDSE.
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