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A theoretical and Empirical Analysis of Convergence and Catch-Up Patterns in Neighboring Areas

Author

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  • Catherine Mounet

    (Universit? de Limoges, Facult? de Droit et des Sciences Economiques, Limoges, France)

Abstract

The goal of this paper is to study the impact of capital accumulation (convergence) and technological transfers (catch-up) on growth. By introducing transfers of technology in the Solow growth model shows two important results: (i) in the long-run, all countries converge and catch-up in rate (i.e. every country grows at the same rate) but not in level: it points out conditional or absolute catch-up and conditional or absolute convergence. (ii) because of the existence of technology diffusion, thre may be overtaking of the USA by other countries. This paper ends with empirical evidence of these two mechanisms on two different samples of countries.

Suggested Citation

  • Catherine Mounet, 2001. "A theoretical and Empirical Analysis of Convergence and Catch-Up Patterns in Neighboring Areas," Ekonomia, Cyprus Economic Society and University of Cyprus, vol. 5(1), pages 129-148, Summer.
    • Handle: RePEc:ekn:ekonom:v:5:y:2001:i:1:p:129-148
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    More about this item

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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