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Knowledge and growth in the very long run

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  • Strulik, Holger

Abstract

This paper proposes a theory for the gradual evolution of knowledge diffusion and growth over the very long run. A feedback mechanism between capital accumulation and the ease of knowledge diffusion explains a long epoch of (quasi-) stasis and an epoch of high growth linked by a gradual economic take-off. It is shown how the feedback mechanism can explain the Great Divergence, the failure of less developed countries to attract capital from abroad, and a productivity slowdown in fully developed countries. An extension towards a two-region world economy shows robustness of the gradual take-off and other interesting interaction between forerunners and followers of the Industrial Revolution.

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  • Strulik, Holger, 2012. "Knowledge and growth in the very long run," University of Göttingen Working Papers in Economics 145, University of Goettingen, Department of Economics.
    • Handle: RePEc:zbw:cegedp:145
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    Cited by:

    1. Lehmann-Hasemeyer, Sibylle & Prettner, Klaus & Tscheuschner, Paul, 2023. "The scientific revolution and its implications for long-run economic development," World Development, Elsevier, vol. 168(C).
    2. Klaus Prettner, 2013. "Population aging and endogenous economic growth," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(2), pages 811-834, April.
    3. Lindner, Ines & Strulik, Holger, 2014. "The great divergence: A network approach," University of Göttingen Working Papers in Economics 193, University of Goettingen, Department of Economics.
    4. repec:got:cegedp:145 is not listed on IDEAS
    5. Holger Strulik, 2014. "Knowledge And Growth In The Very Long Run," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55(2), pages 459-482, May.
    6. Lindner, Ines & Strulik, Holger, 2014. "From tradition to modernity: Economic growth in a small world," Journal of Development Economics, Elsevier, vol. 109(C), pages 17-29.
    7. Voxi Heinrich Amavilah & Antonio Rodriguez Andres, 2022. "Knowledge Economy and the Economic Performance of African Countries: A Seemingly Unrelated and Recursive Approach," Working Papers 57, The German University in Cairo, Faculty of Management Technology.

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    More about this item

    Keywords

    industrial revolution; endogenous growth; knowledge diffusion; productivity slowdown; convergence; divergence;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity

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