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The Weightless Economy in Economic Development

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  • Quah, D.

Abstract

Can the increasing signicance of knowledge-products in national income- the growing weightless economy-infuence economic development? Those technologies reduce "distance" between consumers and knowledge production This paper analyzes a model embodying such a reduction. The model shows how demand-side attributes-consumer attitudes on complex goods; training, educa tion, and skills for consumption (rather than production)-can importantly affect patterns of economic growth and development. Evidence from the failed Industrial Revolution in 14th-century China illustrates the empirical relevance of the analysis.

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Bibliographic Info

Paper provided by World Institute for Development Economics Research in its series Research Paper with number 155.

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Length: 30 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:wodeec:155

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Postal: United Nations University; World Institute for Development Economics Research, Katajanokanlaituri 6B, 00160 Helsinki
Phone: +358-9-6159911
Fax: +358-9-61599333
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Web page: http://www.wider.unu.edu/
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Keywords: TECHNOLOGY ; ECONOMIC GROWTH ; KNOWLEDGE;

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References

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  1. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-51, March.
  2. Jones, Charles I, 1995. "R&D-Based Models of Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 759-84, August.
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  5. Grossman, Gene M & Helpman, Elhanan, 1991. "Quality Ladders in the Theory of Growth," Review of Economic Studies, Wiley Blackwell, vol. 58(1), pages 43-61, January.
  6. Rosen, Sherwin, 1981. "The Economics of Superstars," American Economic Review, American Economic Association, vol. 71(5), pages 845-58, December.
  7. Pohjola, M., 2000. "Information Technology and Economic Growth. A Cross-Country Analysis," Research Paper 173, World Institute for Development Economics Research.
  8. Keely, Louise & Quah, Danny, 1998. "Technology in Growth," CEPR Discussion Papers 1901, C.E.P.R. Discussion Papers.
  9. Shaked, Avner & Sutton, John, 1982. "Relaxing Price Competition through Product Differentiation," Review of Economic Studies, Wiley Blackwell, vol. 49(1), pages 3-13, January.
  10. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
  11. Krusell, P. & Rios-Rull, J.V., 1993. "Vested Interests in a Positive Theory of Stagnation and Growth," Papers 547, Stockholm - International Economic Studies.
  12. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
  13. Jorgenson, D.W. & Stiroh, K., 1994. "Computers abd Growth," Harvard Institute of Economic Research Working Papers 1707, Harvard - Institute of Economic Research.
  14. Quah, Danny T, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," Economic Journal, Royal Economic Society, vol. 106(437), pages 1045-55, July.
  15. L. Wade, 1988. "Review," Public Choice, Springer, vol. 58(1), pages 99-100, July.
  16. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
  17. Danny Quah, 1996. "Twin peaks : growth and convergence in models of distribution dynamics," LSE Research Online Documents on Economics 2278, London School of Economics and Political Science, LSE Library.
  18. Danny Quah, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEP Discussion Papers dp0280, Centre for Economic Performance, LSE.
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Cited by:
  1. Andrés Rodríguez-Pose & Riccardo Crescenzi, 2008. "Mountains in a flat world: why proximity still matters for the location of economic activity," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 1(3), pages 371-388.
  2. Humphreys, David, 2010. "The great metals boom: A retrospective," Resources Policy, Elsevier, vol. 35(1), pages 1-13, March.
  3. Leonardo Becchetti & Fabrizio Adriani, 2003. "Does the Digital Divide Matter? The Role of Information and Communication Technology in Cross-country Level and Growth Estimates?," CEIS Research Paper 4, Tor Vergata University, CEIS.
  4. Pierre Mohnen & Jacques Mairesse & Marcel Dagenais, 2006. "Innovativity: A Comparison Across Seven European Countries," NBER Working Papers 12280, National Bureau of Economic Research, Inc.
  5. Carlo MENON, 2014. "La propagation des grandes idées? L\'impact de l\'activité de brevet des firmes leader sur les inventeurs locaux," Cahiers du GREThA 2014-11, Groupe de Recherche en Economie Théorique et Appliquée.
  6. Oldenski, Lindsay, 2012. "Export Versus FDI and the Communication of Complex Information," Journal of International Economics, Elsevier, vol. 87(2), pages 312-322.
  7. Dalgaard, Carl-Johan & Strulik, Holger, 2011. "Energy distribution and economic growth," Resource and Energy Economics, Elsevier, vol. 33(4), pages 782-797.
  8. Wolfgang Keller, 2009. "International Trade, Foreign Direct Investment, and Technology Spillovers," NBER Working Papers 15442, National Bureau of Economic Research, Inc.
  9. Frances Ruane & Ali U?ur, 2005. "Export Platform FDI and Dualistic Development," The Institute for International Integration Studies Discussion Paper Series iiisdp028, IIIS.
  10. Gern, Klaus-Jürgen & Gottschalk, Jan & Kamps, Christophe & Sander, Birgit & Scheide, Joachim & Strauß, Hubert, 2000. "Weltwirtschaft unter Volldampf," Open Access Publications from Kiel Institute for the World Economy 2499, Kiel Institute for the World Economy (IfW).
  11. Cigan, Heidi, 2002. "The internet's contribution to progress and growth in Germany: The economic impact of the internet and the price structure of access," HWWA Reports 216, Hamburg Institute of International Economics (HWWA).

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