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The impact of knowledge diffusion on economic growth across countries

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  • Perez-Trujillo, Manuel
  • Lacalle-Calderon, Maricruz

Abstract

The aim of this paper is to examine theoretically and empirically the impact of improvement in the capability to access innovation and knowledge on economic growth and convergence among countries. Our results, obtained using an augmented Solow-Swan growth model and panel data methodology with a sample of 138 countries for the period 1990–2014, show not only that improvement in the capability to access innovation and knowledge (proxied by percentage of internet users) has a positive impact on said economic growth, fostering the technological catch-up process for developing countries and accelerating the pattern of economic convergence, but also that this improvement has an even greater effect on developing countries when democracy is well developed, accelerating the pattern of economic convergence even further.

Suggested Citation

  • Perez-Trujillo, Manuel & Lacalle-Calderon, Maricruz, 2020. "The impact of knowledge diffusion on economic growth across countries," World Development, Elsevier, vol. 132(C).
    • Handle: RePEc:eee:wdevel:v:132:y:2020:i:c:s0305750x20301212
    DOI: 10.1016/j.worlddev.2020.104995
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    4. Joël Cariolle & Yasmine Elkhateeb & Mathilde Maurel, 2022. "(Mis-)information technology: Internet use and perception of democracy in Africa," Documents de travail du Centre d'Economie de la Sorbonne 22010, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    5. Alvarado, Rafael & Cuesta, Lizeth & Kumar, Pavan & Rehman, Abdul & Murshed, Muntasir & Işık, Cem & Vega, Nora & Ochoa-Moreno, Santiago & Tillaguango, Brayan, 2022. "Impact of natural resources on economic progress: Evidence for trading blocs in Latin America using non-linear econometric methods," Resources Policy, Elsevier, vol. 79(C).
    6. Liu Fengqin & Kumar Jai & Sun Huaping & Edziah Bless Kofi, 2025. "Harnessing the Digital Economy for Sustainable Energy Efficiency: An Empirical Analysis of China’s Yangtze River Delta," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 19(1), pages 1-15.
    7. Kaffo Fotio, Hervé & Timbi, Sezard & Mbiankeu Nguéa, Stéphane, 2024. "Breaking barriers, building resilience: Leveraging knowledge to mitigate energy vulnerability in Africa," Energy Policy, Elsevier, vol. 194(C).
    8. Jarrín-V, Pablo & Falconí, Fander & Cango, Pedro & Ramos-Martin, Jesus, 2021. "Knowledge gaps in Latin America and the Caribbean and economic development," World Development, Elsevier, vol. 146(C).
    9. Skare, Marinko & Soriano, Domingo Riberio, 2021. "Technological and knowledge diffusion link: An international perspective 1870–2019," Technology in Society, Elsevier, vol. 66(C).
    10. Bryan Hardy & Can Sever, 2025. "What is needed for convergence? The role of finance and capital," BIS Working Papers 1284, Bank for International Settlements.
    11. Ge, Shuang & Liu, Xielin, 2022. "The role of knowledge creation, absorption and acquisition in determining national competitive advantage," Technovation, Elsevier, vol. 112(C).
    12. Kangni Lyu & Shuwang Yang & Kun Zheng & Yao Zhang, 2023. "How Does the Digital Economy Affect Carbon Emission Efficiency? Evidence from Energy Consumption and Industrial Value Chain," Energies, MDPI, vol. 16(2), pages 1-20, January.
    13. Sylvia Novillo-Villegas & Ana Belén Tulcanaza-Prieto & Alexander X. Chantera & Christian Chimbo, 2025. "Exploring a Sustainable Pathway Towards Enhancing National Innovation Capacity from an Empirical Analysis," Sustainability, MDPI, vol. 17(15), pages 1-25, July.
    14. Emma Serwaa Obobisa & Haibo Chen & Emmanuel Caesar Ayamba & Claudia Nyarko Mensah, 2021. "The Causal Relationship Between China-Africa Trade, China OFDI, and Economic Growth of African Countries," SAGE Open, , vol. 11(4), pages 21582440211, December.
    15. Bryan Hardy & Can Sever, 2026. "Innovation Convergence," Review of International Economics, Wiley Blackwell, vol. 34(1), pages 110-135, February.
    16. Essotanam Mamba, 2025. "Natural Resource Rents, Manufacturing Trade, and Manufacturing Growth: Evidence from Linear and Nonlinear Regressions for ECOWAS Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 67(1), pages 150-185, March.

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    Keywords

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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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