A model of technology adoption and growth

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A model of technology adoption and growth

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Stephen L. Parente (Department of Economics, Northeastern University, Boston, MA 02115, USA)

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Stephen Parente

Abstract

We construct a model of economic growth in which firms adopt more advanced technologies. In order to advance its technology, a firm must make an investment. The size of this investment depends on the size of the technology adoption barriers in the firm's country. Assuming a Markov chain for these barriers, we examine the amount of variation and persistence in the chain for which the model matches the observed output disparity across countries and the mobility of nations. Our calibration suggests a range for the size of these barriers of a factor five, and the presence of a barrier trap.

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Article provided by Springer in its journal Economic Theory.

Volume (Year): 6 (1995)
Issue (Month): 3 ()
Pages: 405-420
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Handle: RePEc:spr:joecth:v:6:y:1995:i:3:p:405-420

Note: Received: January 10, 1993; revised version May 16, 1994
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Article
- Parente, Stephen L, 1995. "A Model of Technology Adoption and Growth," Economic Theory, Springer, vol. 6(3), pages 405-20, November.

Cited by:
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Aubhik Khan & B. Ravikumar, 2000. "Costly technology adoption and capital accumulation," Working Papers 00-7, Federal Reserve Bank of Philadelphia. [Downloadable!]
Other versions:
- Khan, A. & Ravikumar, B., 1997. "Costly Technology Adoption and Capital Accumulation," Working Papers 97-12, University of Iowa, Department of Economics.
- Aubhik Khan & B. Ravikumar, 1998. "Costly Technology Adoption and Capital Accumulation," Development and Comp Systems 9802001, EconWPA. [Downloadable!]
- Aubhik Khan & B. Ravikumar, 2002. "Costly Technology Adoption and Capital Accumulation," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(2), pages 489-502, April. [Downloadable!] (restricted)
Emilio Barucci & Fausto Gozzi, 2001. "Technology adoption and accumulation in a vintage-capital model," Journal of Economics, Springer, vol. 74(1), pages 1-38, February. [Downloadable!] (restricted)
Been-Lon Chen & Jie-Ping Mo & Ping Wang, 1999. "Market Frictions, Technology Adoption and Economic Growth," Working Papers 0034, Department of Economics, Vanderbilt University, revised Aug 2000. [Downloadable!]
Other versions:
- Chen, Been-Lon & Mo, Jie-Ping & Wang, Ping, 2002. "Market frictions, technology adoption and economic growth," Journal of Economic Dynamics and Control, Elsevier, vol. 26(11), pages 1927-1954, September. [Downloadable!] (restricted)
Canton, E.J.F. & Groot, H.L.F. de & Nahuis, R., 1999. "Vested interest and resistance to technology adoption," Discussion Paper 106, Tilburg University, Center for Economic Research. [Downloadable!]
Stephen L. Parente & Edward C. Prescott, 1991. "Technology adoption and growth," Staff Report 136, Federal Reserve Bank of Minneapolis. [Downloadable!]
Other versions:
- Stephen L. Parente & Edward C. Prescott, 1991. "Technology Adoption and Growth," NBER Working Papers 3733, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Shankha Chakraborty & Amartya Lahiri, 2003. "Costly Intermediation and the Poverty of Nations," University of Oregon Economics Department Working Papers 2003-1, University of Oregon Economics Department, revised 01 Jan 2003. [Downloadable!]
Other versions:
- Shankha Chakraborty & Amartya Lahiri, 2007. "Costly Intermediation And The Poverty Of Nations," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 48(1), pages 155-183, 02. [Downloadable!] (restricted)
Roc Armenter & Amartya Lahiri, 2006. "Endogenous productivity and development accounting," Staff Reports 258, Federal Reserve Bank of New York. [Downloadable!]
Other versions:
- Roc Armenter & Amartya Lahiri, 2006. "Endogenous Productivity and Development Accounting," 2006 Meeting Papers 268, Society for Economic Dynamics.

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