IDEAS home Printed from https://ideas.repec.org/a/eee/streco/v23y2012i4p421-436.html

Some searches may not work properly. We apologize for the inconvenience.

   My bibliography  Save this article

Polarization patterns in economic development and innovation

Author

Listed:
  • Azomahou, Théophile T.
  • Diene, Mbaye

Abstract

This paper examines the polarization of economic development in African economies. Based on nonparametric and bipolarization frameworks, we find that countries tend to cluster in two classes, and that bipolarization has been accelerating over the period 1966–2008. We relate the evolution of income bipolarization to specialization in a country. The main sectors that tend to reduce income bipolarization are mining and services. We also study the effects of innovation on income polarization. In particular, we analyze short-run and long-run effects of innovation and their inter-relationship with income polarization. We show that the impact of innovation differs depending on its origin and its type. If innovation is resident, then trademarks outweigh patents. On the contrary, if the origin of innovation is non resident, then patents have a greater effect. Moreover, there is an adjustment process between trademarks residents and patents residents. In the short-run, when trademarks residents are too high, they quickly fall back toward patents residents level. We do not observe such adjustments between trademarks non residents and patents non residents. Last, unexpected shocks that affect patents (res. trademarks) have a permanent (res. transitory) effects on income polarization.

Suggested Citation

  • Azomahou, Théophile T. & Diene, Mbaye, 2012. "Polarization patterns in economic development and innovation," Structural Change and Economic Dynamics, Elsevier, vol. 23(4), pages 421-436.
    • Handle: RePEc:eee:streco:v:23:y:2012:i:4:p:421-436
    DOI: 10.1016/j.strueco.2012.08.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0954349X12000586
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.strueco.2012.08.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Christian Schultz, 1996. "Polarization and Inefficient Policies," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 63(2), pages 331-344.
    3. Alberto Alesina & Enrico Spolaore, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1027-1056.
    4. Rachel Griffith & Stephen Redding & John Van Reenen, 2004. "Mapping the Two Faces of R&D: Productivity Growth in a Panel of OECD Industries," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 883-895, November.
    5. Ulrich Schmoch, 2003. "Service marks as novel innovation indicator," Research Evaluation, Oxford University Press, vol. 12(2), pages 149-156, August.
    6. Quah, Danny T, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," Economic Journal, Royal Economic Society, vol. 106(437), pages 1045-1055, July.
    7. Bernard Fingleton & Enrique López-Bazo, 2003. "Explaining the Distribution of Manufacturing Productivity in the EU Regions," Advances in Spatial Science, in: Bernard Fingleton (ed.), European Regional Growth, chapter 13, pages 375-409, Springer.
    8. Esteban, Joan & Ray, Debraj, 1994. "On the Measurement of Polarization," Econometrica, Econometric Society, vol. 62(4), pages 819-851, July.
    9. Chen, Yongmin & Puttitanun, Thitima, 2005. "Intellectual property rights and innovation in developing countries," Journal of Development Economics, Elsevier, vol. 78(2), pages 474-493, December.
    10. Quah, Danny, 1997. "Empirics for growth and distribution," LSE Research Online Documents on Economics 2138, London School of Economics and Political Science, LSE Library.
    11. Bernard, Andrew B. & Durlauf, Steven N., 1996. "Interpreting tests of the convergence hypothesis," Journal of Econometrics, Elsevier, vol. 71(1-2), pages 161-173.
    12. Galor, Oded, 1996. "Convergence? Inferences from Theoretical Models," Economic Journal, Royal Economic Society, vol. 106(437), pages 1056-1069, July.
    13. Durlauf, Steven N & Johnson, Paul A, 1995. "Multiple Regimes and Cross-Country Growth Behaviour," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(4), pages 365-384, Oct.-Dec..
    14. Wolfson, Michael C, 1994. "When Inequalities Diverge," American Economic Review, American Economic Association, vol. 84(2), pages 353-358, May.
    15. Harald Badinger & Werner Muller & Gabriele Tondl, 2004. "Regional Convergence in the European Union, 1985- 1999: A Spatial Dynamic Panel Analysis," Regional Studies, Taylor & Francis Journals, vol. 38(3), pages 241-253.
    16. Bernard, Andrew B & Durlauf, Steven N, 1995. "Convergence in International Output," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(2), pages 97-108, April-Jun.
    17. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    18. Jean-Yves Duclos & Joan Esteban & Debraj Ray, 2004. "Polarization: Concepts, Measurement, Estimation," Econometrica, Econometric Society, vol. 72(6), pages 1737-1772, November.
    19. You‐Qiang Wang & Kai‐Yuen Tsui, 2000. "Polarization Orderings and New Classes of Polarization Indices," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 2(3), pages 349-363, July.
    20. Carsten Fink & Beata Smarzynska Javorcik & Mariana Spatareanu, 2005. "Income-Related Biases in International Trade: What Do Trademark Registration Data Tell Us?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 141(1), pages 79-103, April.
    21. Danny Quah, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEP Discussion Papers dp0280, Centre for Economic Performance, LSE.
    22. Bénédicte Vidaillet & V. d'Estaintot & P. Abécassis, 2005. "Introduction," Post-Print hal-00287137, HAL.
    23. Mendonca, Sandro & Pereira, Tiago Santos & Godinho, Manuel Mira, 2004. "Trademarks as an indicator of innovation and industrial change," Research Policy, Elsevier, vol. 33(9), pages 1385-1404, November.
    24. Paul Makdissi & Thierry Roy & Luc Savard, 2008. "An ethnic polarization measure with an application to Ivory Coast data," Working Papers 0806E, University of Ottawa, Department of Economics.
    25. repec:ebl:ecbull:v:15:y:2005:i:12:p:1-9 is not listed on IDEAS
    26. Eugenia Baroncelli & Ekaterina Krivonos & Marcelo Olarreaga, 2007. "Trademark Protection or Protectionism?," Review of International Economics, Wiley Blackwell, vol. 15(1), pages 126-145, February.
    27. Bernard Fingleton (ed.), 2003. "European Regional Growth," Advances in Spatial Science, Springer, number 978-3-662-07136-6, February.
    28. Chudnovsky, Daniel, 1979. "Foreign trademarks in developing countries," World Development, Elsevier, vol. 7(7), pages 663-682, July.
    29. Anderson, Gordon, 2004. "Toward an empirical analysis of polarization," Journal of Econometrics, Elsevier, vol. 122(1), pages 1-26, September.
    30. X. Zhang & R. Kanbur, 2001. "What Difference Do Polarisation Measures Make? An Application to China," Journal of Development Studies, Taylor & Francis Journals, vol. 37(3), pages 85-98.
    31. Newey, Whitney & West, Kenneth, 2014. "A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 33(1), pages 125-132.
    32. Jan Fagerberg & Manuel Godinho, 2003. "Innovation and catching-up," Working Papers 24, Centre for Technology, Innovation and Culture, University of Oslo.
    33. Fagerberg, Jan & Srholec, Martin & Verspagen, Bart, 2010. "Innovation and Economic Development," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 833-872, Elsevier.
    34. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, vol. 76(5), pages 1072-1085, December.
    35. Quah, Danny T., 1996. "Empirics for economic growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1353-1375, June.
    36. Jan Fagerberg & Martin Srholec & Bart Verspagen, 2010. "The Role of Innovation in Development," Review of Economics and Institutions, Università di Perugia, vol. 1(2).
    37. Conchita D’ambrosio, 2001. "Household Characteristics and the Distribution of Income In Italy: An Application of Social Distance Measures," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(1), pages 43-64, March.
    38. Jon Miller & Ismail Genc, 2005. "Alternative regional specification and convergence of U.S. regional growth rates," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 39(2), pages 241-252, June.
    39. Walter G. Park & Juan Carlos Ginarte, 1997. "Intellectual Property Rights And Economic Growth," Contemporary Economic Policy, Western Economic Association International, vol. 15(3), pages 51-61, July.
    40. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    41. Ravallion, Martin & Chen, Shaohua, 1997. "What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?," The World Bank Economic Review, World Bank, vol. 11(2), pages 357-382, May.
    42. Gene M. Grossman & Elhanan Helpman, 1994. "Endogenous Innovation in the Theory of Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 23-44, Winter.
    43. Quah, Danny, 1993. "Empirical cross-section dynamics in economic growth," European Economic Review, Elsevier, vol. 37(2-3), pages 426-434, April.
    44. Seshanna, Shubhasree & Decornez, Stephane, 2003. "Income polarization and inequality across countries: an empirical study," Journal of Policy Modeling, Elsevier, vol. 25(4), pages 335-358, June.
    45. Greer, Douglas F., 1979. "The economic benefits and costs of trademarks: Lessons for the developing countries," World Development, Elsevier, vol. 7(7), pages 683-704, July.
    46. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
    47. Quah, Danny, 1997. "Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," CEPR Discussion Papers 1586, C.E.P.R. Discussion Papers.
    48. Satya R. Chakravarty & Amita Majumder, 2001. "Inequality, Polarisation and Welfare: Theory and Applications," Australian Economic Papers, Wiley Blackwell, vol. 40(1), pages 1-13, March.
    49. Theophile Azomahou & Thi Kim Cuong Pham & Phu Nguyen Van & Jalal El Ouardighi, 2005. "Income distribution dynamics across European regions," Economics Bulletin, AccessEcon, vol. 15(12), pages 1-9.
    50. Magrini, Stefano, 2004. "Regional (di)convergence," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 62, pages 2741-2796, Elsevier.
    51. Johansen, Soren, 1995. "Likelihood-Based Inference in Cointegrated Vector Autoregressive Models," OUP Catalogue, Oxford University Press, number 9780198774501, Decembrie.
    52. Guellec, Dominique & van Pottelsberghe de la Potterie, Bruno, 2007. "The Economics of the European Patent System: IP Policy for Innovation and Competition," OUP Catalogue, Oxford University Press, number 9780199216987, Decembrie.
    53. Romer, Paul M, 1987. "Growth Based on Increasing Returns Due to Specialization," American Economic Review, American Economic Association, vol. 77(2), pages 56-62, May.
    54. repec:bla:jpbect:v:2:y:2000:i:3:p:349-63 is not listed on IDEAS
    55. Valentina Meliciani, 2006. "Income and employment disparities across European regions: The role of national and spatial factors," Regional Studies, Taylor & Francis Journals, vol. 40(1), pages 75-91.
    56. Quah, Danny, 1996. "Twin peaks : growth and convergence in models of distribution dynamics," LSE Research Online Documents on Economics 2278, London School of Economics and Political Science, LSE Library.
    57. Rujas, Javier, 1999. "Trade marks: complementary to patents," World Patent Information, Elsevier, vol. 21(1), pages 35-39, March.
    58. Danny Quah, 1997. "Empirics for Growth and Distribution," CEP Discussion Papers dp0324, Centre for Economic Performance, LSE.
    59. Johnson, Paul A., 2000. "A nonparametric analysis of income convergence across the US states," Economics Letters, Elsevier, vol. 69(2), pages 219-223, November.
    60. Quah, Danny T, 1997. "Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," Journal of Economic Growth, Springer, vol. 2(1), pages 27-59, March.
    61. Antonio J. Mora & Esther Vayá & Jordi Suriñach & Enrique López-Bazo, 1999. "original: Regional economic dynamics and convergence in the European Union," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 33(3), pages 343-370.
    62. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-251, April.
    63. J. V. Henderson & J. F. Thisse (ed.), 2004. "Handbook of Regional and Urban Economics," Handbook of Regional and Urban Economics, Elsevier, edition 1, volume 4, number 4.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carolina Castaldi & Sandro Mendonca, 2021. "Regions and trademarks. Research opportunities and policy insights from leveraging trademarks in regional innovation studies," Papers in Evolutionary Economic Geography (PEEG) 2138, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2021.
    2. Kun Lv & Shurong Yu & Dian Fu & Jingwen Wang & Chencheng Wang & Junbai Pan, 2022. "The Impact of Financial Development and Green Finance on Regional Energy Intensity: New Evidence from 30 Chinese Provinces," Sustainability, MDPI, vol. 14(15), pages 1-29, July.
    3. Marta Pascual & David Cantarero & Paloma Lanza, 2018. "Health polarization and inequalities across Europe: an empirical approach," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(8), pages 1039-1051, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Azomahou, Theophile & Diene, Mbaye, 2012. "Income polarization and innovation: Evidence from African economies," MERIT Working Papers 2012-048, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Roberto Ezcurra & Carlos Gil & Pedro Pascual & Manuel Rapun, 2005. "Inequality, Polarisation and Regional Mobility in the European Union," Urban Studies, Urban Studies Journal Limited, vol. 42(7), pages 1057-1076, June.
    3. Cem Ertur & Julie Le Gallo & Catherine Baumont, 2006. "The European Regional Convergence Process, 1980-1995: Do Spatial Regimes and Spatial Dependence Matter?," International Regional Science Review, , vol. 29(1), pages 3-34, January.
    4. Roberto Ezcurra & Pedro Pascual, 2007. "Regional Polarisation and National Development in the European Union," Urban Studies, Urban Studies Journal Limited, vol. 44(1), pages 99-122, January.
    5. Park, Seonyoung & Shin, Donggyun, 2020. "Recent Changes in the Nature of Distribution Dynamics of US County Incomes," Working Paper Series 8075, Victoria University of Wellington, School of Economics and Finance.
    6. Sheila Chapman & Stefania Cosci & Loredana Mirra, 2012. "Income dynamics in an enlarged Europe: the role of capital regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(3), pages 663-693, June.
    7. Park, Seonyoung & Shin, Donggyun, 2020. "Recent Changes in the Nature of Distribution Dynamics of US County Incomes," Working Paper Series 20926, Victoria University of Wellington, School of Economics and Finance.
    8. K.P. Gluschenko (glu@nsu.ru ), 2010. "Income inequality in Russian regions: comparative analysis," Journal "Region: Economics and Sociology", Institute of Economics and Industrial Engineering of Siberian Branch of RAS, vol. 4.
    9. Azomahou, Théophile T. & El ouardighi, Jalal & Nguyen-Van, Phu & Pham, Thi Kim Cuong, 2011. "Testing convergence of European regions: A semiparametric approach," Economic Modelling, Elsevier, vol. 28(3), pages 1202-1210, May.
    10. Epstein, Philip & Howlett, Peter & Schulze, Max-Stephan, 2003. "Distribution dynamics: stratification, polarization, and convergence among OECD economies, 1870-1992," Explorations in Economic History, Elsevier, vol. 40(1), pages 78-97, January.
    11. Breinlich, Holger & Ottaviano, Gianmarco I.P. & Temple, Jonathan R.W., 2014. "Regional Growth and Regional Decline," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 4, pages 683-779, Elsevier.
    12. Falko Juessen, 2009. "A distribution dynamics approach to regional GDP convergence in unified Germany," Empirical Economics, Springer, vol. 37(3), pages 627-652, December.
    13. Roberto Ezcurra & Pedro Pascual & Manuel Rapún, 2007. "Spatial disparities in the European Union: an analysis of regional polarization," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 41(2), pages 401-429, June.
    14. Durlauf, Steven N. & Quah, Danny T., 1999. "The new empirics of economic growth," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 4, pages 235-308, Elsevier.
    15. Joan Esteban & Debraj Ray, 2005. "A Comparison of Polarization Measures," Working Papers 310, Barcelona School of Economics.
    16. Leone Leonida & Daniel Montolio, 2001. "Convergence and Inter-Distributional Dynamics among the Spanish Provinces. A Non-parametric Density Estimation Approach," Working Papers 2001/7, Institut d'Economia de Barcelona (IEB).
    17. Magrini, Stefano, 2004. "Regional (di)convergence," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 62, pages 2741-2796, Elsevier.
    18. Konstantin Gluschenko, 2010. "Methodologies of Analyzing Inter-Regional Income Inequality and Their Applications to Russia," William Davidson Institute Working Papers Series wp984, William Davidson Institute at the University of Michigan.
    19. Andrea Bonilla, 2014. "An Examination of the Convergence in the Output of South American Countries: The Influence of the Region's Integration Projects," Working Papers halshs-01069353, HAL.
    20. Leone Leonida & Leone Leonida & Daniel Montolio, 2003. "Public Capital, Growth and Convergence in Spain. A Counterfactual Density Estimation Approach," Working Papers 2003/3, Institut d'Economia de Barcelona (IEB).

    More about this item

    Keywords

    Income polarization; Patents; Trademarks;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:streco:v:23:y:2012:i:4:p:421-436. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/525148 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.