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Technology in the Great Divergence

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Author Info
Gregory Clark
Robert Feenstra

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Abstract

In this paper, we examine the changes in per-capita income and productivity from 1700 to modern times, and show four things: (1) that incomes per capita diverged more around the world after 1800 than before; (2) that the source of this divergence was increasing differences in the efficiency of economies; (3) that these differences in efficiency were not due to problems of poor countries in getting access to the new technologies of the Industrial Revolution; (4) that the pattern of trade from the late nineteenth century between the poor and the rich economies suggests that the problem of the poor economies was peculiarly a problem of employing labor effectively. This continues to be true today.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 8596.

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Date of creation: Nov 2001
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Handle: RePEc:nbr:nberwo:8596

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N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services

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  1. Kalemli-Ozcan, Sebnem & Reshef, Ariell & Sorensen, Bent E & Yosha, Oved, 2006. "Why Does Capital Flow to Rich States?," CEPR Discussion Papers 5635, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. Allen Scott & Michael Storper, 2003. "Regions, Globalization, Development," Regional Studies, Taylor and Francis Journals, vol. 37(6-7), pages 549-578, August. [Downloadable!] (restricted)
  3. Galor, Oded & Mountford, Andrew, 2008. "Trading Population for Productivity: Theory and Evidence," CEPR Discussion Papers 6678, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. Alan M. Taylor, 2004. "Commentary : demographic changes and international factor mobility," Proceedings, Federal Reserve Bank of Kansas City, issue Aug, pages 421-435. [Downloadable!]
  5. Carolina Castaldi & Giovanni Dosi, 2008. "Technical Change and Economic Growth: Some Lessons from Secular Patterns and Some Conjectures on the Current Impact of ICT Technology," LEM Papers Series 2008/01, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
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