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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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Publication status: published as Gregory Clark, Robert C. Feenstra. "Technology in the Great Divergence," in Michael D. Bordo, Alan M. Taylor and Jeffrey G. Williamson, editors, "Globalization in Historical Perspective" University of Chicago Press (2003)
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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