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Some properties of the technology gap between leading and lagging regions

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  • Batabyal, Amitrajeet
  • Nijkamp, Peter

Abstract

We theoretically analyze some properties of the technology gap between leading and lagging regions studied recently by Batabyal and Nijkamp [1]. New technologies are developed in the leading region. The lagging region does not conduct research and development (R & D) but uses the leading region’s technology with a temporal gap of τ > 0 time periods. We first use a model with a single factor of production, human capital, to study the relationship between the technology gap τ and the difference in the growth rates of output per human capital unit in the leading and in the lagging region. Next, we introduce a second factor of production, physical capital, and use a variant of the Solow growth model to shed light on two issues. We show that despite the existence of the technology gap, on the balanced growth path (BGP), the physical to effective human capital ratio is identical in both regions. Finally, we demonstrate that introducing a second factor of production does not alter the relationship between the technology gap τ and the difference in the growth rates of output per human capital unit in the two regions.

Suggested Citation

  • Batabyal, Amitrajeet & Nijkamp, Peter, 2014. "Some properties of the technology gap between leading and lagging regions," MPRA Paper 71596, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:71596
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    References listed on IDEAS

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    1. Borota, Teodora, 2012. "Innovation and imitation in a model of North–South trade," Journal of International Economics, Elsevier, vol. 87(2), pages 365-376.
    2. Sadik, Jacques, 2008. "Technology adoption, convergence, and divergence," European Economic Review, Elsevier, vol. 52(2), pages 338-355, February.
    3. Castellacci, Fulvio, 2008. "Technology clubs, technology gaps and growth trajectories," Structural Change and Economic Dynamics, Elsevier, vol. 19(4), pages 301-314, December.
    4. Nocco, Antonella, 2005. "The rise and fall of regional inequalities with technological differences and knowledge spillovers," Regional Science and Urban Economics, Elsevier, vol. 35(5), pages 542-569, September.
    5. Lall, Somik V. & Timmins, Christopher & Yu, Shouyue, 2009. "Connecting lagging and leading regions : the role of labor mobility," Policy Research Working Paper Series 4843, The World Bank.
    6. Klaus Desmet & Ignacio Ortuño Ortín, 2007. "Rational Underdevelopment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(1), pages 1-24, March.
    7. Kaliappa Kalirajan, 2004. "Economic reform and the transmission of growth impulses across Indian states," International Journal of Social Economics, Emerald Group Publishing, vol. 31(5/6), pages 623-636, May.
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    Citations

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    Cited by:

    1. Amitrajeet A. Batabyal & Hamid Beladi, 2021. "Interregional demand for workers and the effects of labour income taxation," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 1042-1050, June.
    2. Amitrajeet A. Batabyal & Peter Nijkamp, 2019. "The magnification of a lagging region’s initial economic disadvantages on the balanced growth path," Asia-Pacific Journal of Regional Science, Springer, vol. 3(3), pages 719-730, October.
    3. Amitrajeet A. Batabyal & Peter Nijkamp, 2020. "Workplace choice, commuting costs, and wage taxation in urban and adjacent rural regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(3), pages 775-786, December.
    4. Amitrajeet A. Batabyal & Hamid Beladi, 2019. "Preference matching, income, and population distribution in urban and adjacent rural regions," Papers in Regional Science, Wiley Blackwell, vol. 98(5), pages 2201-2208, October.
    5. Amitrajeet A. BATABYAL, 2018. "Note On Local Public Good Induced Spillovers Between A Leading And A Lagging Region," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 11-16, July.
    6. Batabyal, Amitrajeet & Yoo, Seung Jick, 2019. "Heterogeneity and the Provision of a Public Good in Leading and Lagging Regions," MPRA Paper 96812, University Library of Munich, Germany, revised 15 Sep 2019.
    7. Batabyal, Amitrajeet A. & Beladi, Hamid, 2015. "Knowledge goods, ordinary goods, and the effects of trade between leading and lagging regions," Research Policy, Elsevier, vol. 44(8), pages 1537-1542.
    8. Thomas Ejdemo & Daniel Örtqvist, 2021. "Exploring a leading and lagging regions dichotomy: does entrepreneurship and diversity explain it?," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-26, December.

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    More about this item

    Keywords

    Economic Growth; Lagging Region; Leading Region; Technology Gap;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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