If Technology Has Arrived Everywhere, Why Has Income Diverged?
AbstractWe study the lags with which new technologies are adopted across countries, and their long-run penetration rates once they are adopted. Using data from the last two centuries, we document two new facts: there has been convergence in adoption lags between rich and poor countries, while there has been divergence in penetration rates. Using a model of adoption and growth, we show that these changes in the pattern of technology diffusion account for 80% of the Great Income Divergence between rich and poor countries since 1820.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 9466.
Date of creation: May 2013
Date of revision:
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Other versions of this item:
- Comin, Diego & Mestieri, Marti, 2013. "If Technology Has Arrived Everywhere, Why Has Income Diverged?," TSE Working Papers 13-409, Toulouse School of Economics (TSE).
- Diego A. Comin & Martí Mestieri Ferrer, 2013. "If Technology Has Arrived Everywhere, Why has Income Diverged?," NBER Working Papers 19010, National Bureau of Economic Research, Inc.
- Diego Comin & Mestieri, 2013. "If Technology Has Arrived Everywhere, Why Has Income Diverged?," INET Research Notes 26, Institute for New Economic Thinking (INET).
- E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-24 (All new papers)
- NEP-ICT-2013-09-24 (Information & Communication Technologies)
- NEP-MAC-2013-09-24 (Macroeconomics)
- NEP-PBE-2013-09-24 (Public Economics)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Income divergence in the face of faster technology adoption
by Economic Logician in Economic Logic on 2013-06-27 14:14:00
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