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The evolution of productivity gaps and specialization patterns

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  • Los, Bart
  • Verspagen, Bart

    (Maastricht University)

Abstract

This paper presents an industry-level model of growth and trade, in which evolving specialization patterns are the endogenous result of innovation, international technology spillovers, learning-by-doing and balance of payments-restricted growth. Differences between industries with regard to their share in consumption are shown to reinforce or mitigate the effects of specialization on aggregate productivity convergence patterns, depending on other parameters. The implications of the model are studied by means of simulation analyses for a wide range of parameter configurations. Copyright � 2006 The Authors; Journal compilation � 2006 Blackwell Publishing Ltd.

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Bibliographic Info

Paper provided by Maastricht University in its series Open Access publications from Maastricht University with number urn:nbn:nl:ui:27-18022.

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Date of creation: 2006
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Publication status: Published in Metroeconomica (2006) v.57, p.464-493
Handle: RePEc:ner:maastr:urn:nbn:nl:ui:27-18022

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Web page: http://www.maastrichtuniversity.nl/web/Home.htm

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References

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  1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October.
  2. Aghion, P. & Howitt, P., 1990. "A Model Of Growth Through Creative Destruction," DELTA Working Papers 90-12, DELTA (Ecole normale supérieure).
  3. Fagerberg, Jan, 1994. "Technology and International Differences in Growth Rates," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1147-75, September.
  4. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
  5. Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542.
  6. Anthony Philip Thirlwall, 1979. "The Balance of Payments Constraint as an Explanation of International Growth Rate Differences," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 32(128), pages 45-53.
  7. Dixon, R & Thirlwall, A P, 1975. "A Model of Regional Growth-Rate Differences on Kaldorian Lines," Oxford Economic Papers, Oxford University Press, vol. 27(2), pages 201-14, July.
  8. Verspagen, Bart, 1997. "Estimating International Technology Spillovers: using Technology Flow Matrices," Open Access publications from Maastricht University urn:nbn:nl:ui:27-18042, Maastricht University.
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Cited by:
  1. Palan, Nicole & Schmiedeberg, Claudia, 2010. "Structural convergence of European countries," Structural Change and Economic Dynamics, Elsevier, vol. 21(2), pages 85-100, May.
  2. Silva, Ester G. & Teixeira, Aurora A.C., 2008. "Surveying structural change: Seminal contributions and a bibliometric account," Structural Change and Economic Dynamics, Elsevier, vol. 19(4), pages 273-300, December.
  3. Axel Schaffer & Jan Rauland, 2011. "Regional efficiency in generating technological knowledge," ERSA conference papers ersa10p1108, European Regional Science Association.
  4. André Lorentz, . "Sectoral Specialisation and Growth Rate Differences Among Integrated Economies," The Electronic Journal of Evolutionary Modeling and Economic Dynamics, IFReDE - Université Montesquieu Bordeaux IV.
  5. Bart Los, 2004. "Identification of strategic industries: A dynamic perspective," Economics of Governance, Springer, vol. 83(4), pages 669-698, October.
  6. Nayak, Purusottam & Mishra, SK, 2009. "Structural Change in Meghalaya: Theory and Evidence," MPRA Paper 15728, University Library of Munich, Germany.
  7. Amavilah, Voxi Heinrich, 2006. "Intensity of technology use and per capita real GDP across some African countries," MPRA Paper 1675, University Library of Munich, Germany.
  8. Ulrich Witt & Thomas Brenner, 2007. "Output Dynamics, Flow Equilibria and Structural Change – A Prolegomenon to Evolutionary Macroeconomics," Papers on Economics and Evolution 2007-12, Max Planck Institute of Economics, Evolutionary Economics Group.
  9. Perez Caldentey, Esteban & Ali, Anesa, 2010. "Growth and convergence/divergence in productivity under balance-of-payments constraint," MPRA Paper 20056, University Library of Munich, Germany.

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