IDEAS home Printed from https://ideas.repec.org/a/jed/journl/v34y2009i2p1-25.html
   My bibliography  Save this article

Economic Growth And Transition: A Stochastic Technological Diffusion Model

Author

Listed:
  • Hui Ying SNG

    () (Division of Economics, School of Humanities and Social Sciences, Nanyang Technological University)

  • Shahidur RAHMAN

    (Division of Economics, School of Humanities and Social Sciences, Nanyang Technological University)

  • Wai Mun CHIA

    () (Division of Economics, School of Humanities and Social Sciences, Nanyang Technological University)

Abstract

This paper constructs a stochastic growth model that anchors on technology diffusion and improvement in social infrastructure to explain the growth of developing countries. The model is based on the technological diffusion model by Barro and Sala-i-Martin (1997) with two significant extensions: the (productivity) parameter in the model which represents social infrastructure is being endogenized and probability of adverse shocks is being incorporated. The stochastic technological diffusion model is able to explain the various economic growth and transition phases of developing economies. Technology diffusion is modeled as the determinant of conditional convergence, while technological progress and economic openness further strengthen the social infrastructure bringing about absolute convergence. The model is also able to explain why some developing economies experience economic take-off while others do not.

Suggested Citation

  • Hui Ying SNG & Shahidur RAHMAN & Wai Mun CHIA, 2009. "Economic Growth And Transition: A Stochastic Technological Diffusion Model," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 34(2), pages 1-25, December.
  • Handle: RePEc:jed:journl:v:34:y:2009:i:2:p:1-25
    as

    Download full text from publisher

    File URL: http://www.jed.or.kr/full-text/34-2/1.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Barnum, Howard N. & Squire, Lyn, 1979. "An econometric application of the theory of the farm-household," Journal of Development Economics, Elsevier, vol. 6(1), pages 79-102, February.
    2. Tangka, Florence K. & Jabbar, Mohammad A., 2005. "Implications of feed scarcity for gender roles in ruminant livestock production," Research Reports 182872, International Livestock Research Institute.
    3. Dercon, Stefan, 2004. "Growth and shocks: evidence from rural Ethiopia," Journal of Development Economics, Elsevier, pages 309-329.
    4. Salvatore Di Falco & Marcella Veronesi & Mahmud Yesuf, 2011. "Does Adaptation to Climate Change Provide Food Security? A Micro-Perspective from Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(3), pages 825-842.
    5. Asfaw, Solomon & Shiferaw, Bekele & Simtowe, Franklin & Lipper, Leslie, 2012. "Impact of modern agricultural technologies on smallholder welfare: Evidence from Tanzania and Ethiopia," Food Policy, Elsevier, vol. 37(3), pages 283-295.
    6. Bandyopadhyay, Sushenjit & Shyamsundar, Priya & Baccini, Alessandro, 2011. "Forests, biomass use and poverty in Malawi," Ecological Economics, Elsevier, vol. 70(12), pages 2461-2471.
    7. Kompal Sinha, 2005. "Household Characteristics and Calorie Intake in Rural India: A Quantile Regression Approach," ASARC Working Papers 2005-02, The Australian National University, Australia South Asia Research Centre.
    8. Eric Miller, 2008. "An Assessment of CES and Cobb-Douglas Production Functions: Working Paper 2008-05," Working Papers 19992, Congressional Budget Office.
    9. Abera Demeke & Alwin Keil & Manfred Zeller, 2011. "Using panel data to estimate the effect of rainfall shocks on smallholders food security and vulnerability in rural Ethiopia," Climatic Change, Springer, vol. 108(1), pages 185-206, September.
    10. Delforce, Julie C., 1994. "Separability in farm-household economics: an experiment with linear programming," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 10(2), April.
    11. repec:bla:agecon:v:48:y:2017:i:4:p:425-435 is not listed on IDEAS
    12. Nisrane, Fantu & Berhane, Guush & Asrat, Sinafikeh & Getachew, Gerawork & Taffesse, Alemayehu Seyoum & Hoddinott, John F., 2011. "Sources of inefficiency and growth in agricultural output in subsistence agriculture: A stochastic frontier analysis," ESSP working papers 19, International Food Policy Research Institute (IFPRI).
    13. Stefan Dercon & John Hoddinott & Tassew Woldehanna, 2005. "Shocks and Consumption in 15 Ethiopian Villages, 1999--2004," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 14(4), pages 559-585, December.
    14. Angrist, Joshua D & Evans, William N, 1998. "Children and Their Parents' Labor Supply: Evidence from Exogenous Variation in Family Size," American Economic Review, American Economic Association, vol. 88(3), pages 450-477, June.
    15. Delforce, Julie C., 1994. "Separability in farm-household economics: An experiment with linear programming," Agricultural Economics, Blackwell, vol. 10(2), pages 165-177, April.
    16. Shiferaw T. Feleke & Richard L. Kilmer & Christina H. Gladwin, 2005. "Determinants of food security in Southern Ethiopia at the household level," Agricultural Economics, International Association of Agricultural Economists, vol. 33(3), pages 351-363, November.
    17. Dawit Mekonnen & Elizabeth Bryan & Tekie Alemu & Claudia Ringler, 2017. "Food versus fuel: examining tradeoffs in the allocation of biomass energy sources to domestic and productive uses in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 48(4), pages 425-435, July.
    18. Kirui, Oliver & Mrzabaev, Alisher, 2015. "Costs of landj degradation in Eastern Africa," 2015 Conference, August 9-14, 2015, Milan, Italy 212007, International Association of Agricultural Economists.
    19. Himayatullah Khan, 2008. "Poverty, environment and economic growth: exploring the links among three complex issues with specific focus on the Pakistan’s case," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 10(6), pages 913-929, December.
    20. Hanan G. Jacoby, 1993. "Shadow Wages and Peasant Family Labour Supply: An Econometric Application to the Peruvian Sierra," Review of Economic Studies, Oxford University Press, vol. 60(4), pages 903-921.
    21. Erwin Bulte & Gonne Beekman & Salvatore Di Falco & Joseph Hella & Pan Lei, 2014. "Behavioral Responses and the Impact of New Agricultural Technologies: Evidence from a Double-blind Field Experiment in Tanzania," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(3), pages 813-830.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Growth; Technology Diffusion; Social Infrastructure; Convergence; S-Curve Hypothesis;

    JEL classification:

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

    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:jed:journl:v:34:y:2009:i:2:p:1-25. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sung Y. Park). General contact details of provider: http://edirc.repec.org/data/eccaukr.html .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.