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Classical and technological convergence: beyond the Solow-Swan growth model

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Author Info
Steve Dowrick
Mark Rogers

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Abstract

Recent investigations into cross-country convergence follow Mankiw, Romer, and Weil (1992) in using a log-linear approximation to the Swan-Solow growth model to specify regressions. These studies tend to assume a common and exogenous technology. In contrast, the technology catch-up literature endogenises the growth of technology. The use of capital stock data renders the approximations and over-identification of the Mankiw model unnecessary and enables us, using dynamic panel estimation, to estimate the separate contributions of diminishing returns and technology transfer to the rate of conditional convergence. We find that both effects are important. Copyright 2002, Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 54 (2002)
Issue (Month): 3 (July)
Pages: 369-385
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Handle: RePEc:oup:oxecpp:v:54:y:2002:i:3:p:369-385

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