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Transitional dynamics in an R&D-based growth model with imitation: Comparing its predictions to the data

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  • Perez-Sebastian, Fidel

Abstract

Employing cross-country data, this paper evaluates the transitional dynamics predictions of a non-scale growth model of endogenous technology innovation and imitation. We show that, unlike the neoclassical growth framework, the transitional dynamics of the R&D-based growth model can account for growth "miracles". The additional convergence power provided by technology imitations allows the model to replicate rapid growth experiences for plausible real interest rates, and reasonable consumption and investment shares. Furthermore, our results can reconcile the big contribution of input factor accumulation to economic growth found by Young (1994, 1995a) with the importance of technology transfer.
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  • Perez-Sebastian, Fidel, 2000. "Transitional dynamics in an R&D-based growth model with imitation: Comparing its predictions to the data," Journal of Monetary Economics, Elsevier, vol. 45(2), pages 437-461, April.
  • Handle: RePEc:eee:moneco:v:45:y:2000:i:2:p:437-461
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    Cited by:

    1. Chris Papageorgiou & Fidel Pérez Sebastián, 2005. "Is The Speed Of Convergence A Good Proxy For The Transitional Growth Path?," Working Papers. Serie AD 2005-33, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    2. Mihály Borsi & Norbert Metiu, 2015. "The evolution of economic convergence in the European Union," Empirical Economics, Springer, vol. 48(2), pages 657-681, March.
    3. Fidel Perez-Sebastian, 2012. "Understanding R&D Policy: Efficiency or Politics?," Review of Economics and Institutions, Università di Perugia, vol. 3(3).
    4. Papageorgiou, Chris & Perez-Sebastian, Fidel, 2004. "Can Transition Dynamics Explain The International Output Data?," Macroeconomic Dynamics, Cambridge University Press, vol. 8(04), pages 466-492, September.
    5. Chris Papageorgiou, 2002. "Human Capital and Convergence in a Non-Scale R&D Growth Model," Departmental Working Papers 2002-10, Department of Economics, Louisiana State University.
    6. repec:lsu:lsuwpp:2003-13 is not listed on IDEAS
    7. Papageorgiou Chris & Pérez-Sebastián Fidel, 2005. "Matching Up the Data on Education with Economic Growth Models," The B.E. Journal of Macroeconomics, De Gruyter, vol. 5(1), pages 1-22, April.
    8. Finn Martensen, 2013. "Globalization, Unemployment, and Product Cycles: Short- and Long-Run Effects," Working Paper Series of the Department of Economics, University of Konstanz 2013-16, Department of Economics, University of Konstanz.
    9. Perez-Sebastian, Fidel, 2000. "Transitional dynamics in an R&D-based growth model with imitation: Comparing its predictions to the data," Journal of Monetary Economics, Elsevier, vol. 45(2), pages 437-461, April.
    10. Papageorgiou, Chris & Perez-Sebastian, Fidel, 2006. "Dynamics in a non-scale R&D growth model with human capital: Explaining the Japanese and South Korean development experiences," Journal of Economic Dynamics and Control, Elsevier, vol. 30(6), pages 901-930, June.
    11. Papageorgiou, Chris, 2003. "Imitation in a non-scale R&D growth model," Economics Letters, Elsevier, vol. 80(3), pages 287-294, September.
    12. Perez-Sebastian, Fidel, 2007. "Public support to innovation and imitation in a non-scale growth model," Journal of Economic Dynamics and Control, Elsevier, vol. 31(12), pages 3791-3821, December.
    13. Steger, Thomas M., 2002. "Transitional dynamics in R&D-based models of endogenous growth," Wirtschaftswissenschaftliche Diskussionspapiere 04/2002, University of Greifswald, Faculty of Law and Economics.
    14. Fidel Pérez Sebastián, 2001. "Growth And Public Support To Innovation And Imitation," Working Papers. Serie AD 2001-31, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    15. Eskander Alvi & Debasri Mukherjee & Ashraf Eid, 2007. "Do Patent Protection and Technology Transfer Facilitate R&D in Developed and Emerging Countries? A Semiparametric Study," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 35(2), pages 217-231, June.
    16. Arnold, Lutz G., 2003. "Growth in stages," Structural Change and Economic Dynamics, Elsevier, vol. 14(1), pages 55-74, March.

    More about this item

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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