Neoclassical convergence versus technological catch-up: A contribution for reaching a consensus
AbstractNew macro empirical evidence is provided to assess the relative importance of object and idea gaps in explaining the world income distribution dynamics. Formal statistical hypothesis tests allow us to discriminate between two competing growthmodels: (i) the standard neoclassical growth model similar to that employed by Mankiw, Romer, and Weil (1992), (ii) an extension of the Nelson and Phelps' approach (1966) that emphasizes the importance of technology transfer in addition to factors accumulation. First, the latter model better characterizes international data at an aggregate level. It cannot be rejected as a null hypothesis and is significantly preferred to a standard neoclassical model. Second, robust to sample selection evidence suggests that the high social returns to investment in equipment (as opposed to structure) reflect technology transfer mediated through capital goods. Finally, technological catch-up mostly benefits socially advanced economies and largely contributes to the polarization of the world income distribution. --
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Bibliographic InfoPaper provided by Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes in its series SFB 373 Discussion Papers with number 2000,42.
Date of creation: 2000
Date of revision:
economic growth; neoclassical convergence; technological catch-up; income dynamics;
Find related papers by JEL classification:
- C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- O50 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - General
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