A Note on Barriers to Capital Accumulation and Income
Abstract
In this paper we clarify the impact that barriers to capital accumulation can have on a two-sector neoclassical growth model's ability to explain the observed differences in incomes across countries. We show that the effect of barriers to technology adoption in a two sector model is necessarily identical to a one-sector model when there are no factor market imperfections and each sector has identical technologies. We also show that this result generalizes to the case when the technologies are different across the sectors.Download Info
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Paper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 200509.Length:
Date of creation: 10 Nov 2005
Date of revision:
Handle: RePEc:rut:rutres:200509
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Keywords: Economic Growth; Economic Development; Barriers; Capital Accumulation;Find related papers by JEL classification:
- F0 - International Economics - - General
- O0 - Economic Development, Technological Change, and Growth - - General
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-01-24 (All new papers)
- NEP-DEV-2006-01-24 (Development)
References
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