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Nonlinear Growth and the Productivity Slowdown

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  • Davide Fiaschi
  • Andrea Mario Lavezzi

Abstract

In this paper we study the productivity slowdown taking as a starting point the nonlinear shape of the growth path. We relate the slowdown to the evolution of the world income distribution in the periods before and after the oil shock of 1973 and show that: i) in both periods growth is nonlinear; ii) the productivity slowdown consists in a downward shift of the nonlinear growth path; iii) in both periods we observe a medium-run tendency to polarization, but the long-run distribution features convergence in the first period and polarization in the second. We provide theoretical and empirical arguments suggesting that the interaction between nonlinear growth and international technology spillovers can explain how a temporary shock may have permanent effects on world growth.

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Bibliographic Info

Paper provided by DEGIT, Dynamics, Economic Growth, and International Trade in its series DEGIT Conference Papers with number c011_012.

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Length: 47 pages
Date of creation: Jun 2006
Date of revision:
Handle: RePEc:deg:conpap:c011_012

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  1. Bernard, Andrew B & Jones, Charles I, 1996. "Technology and Convergence," Economic Journal, Royal Economic Society, vol. 106(437), pages 1037-44, July.
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  7. Fiaschi, Davide & Lavezzi, Andrea Mario, 2007. "Nonlinear economic growth: Some theory and cross-country evidence," Journal of Development Economics, Elsevier, vol. 84(1), pages 271-290, September.
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Cited by:
  1. Luca Pieroni, 2007. "Military Spending and Economic Growth," Working Papers 0708, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.

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