IDEAS home Printed from
   My bibliography  Save this article

Cyclical technological evolution and comparative economic growth


  • Elias Dinopoulos
  • Peter Thompson


A two-country model of growth is developed with exogenous fluctuations in the rate of technological progress. Technological growth in the leading country follows a random walk, while in the lagging country the rate of advance depends on the technological distance between the two countries and the efficiency of limitation. In the absence of cyclical technological change or lags in technology transfer, there is monotonic convergence in income levels. If the two countries share initially identical technologies, their standards of living never diverge. In the presence of cyclical technological change and lags of limitation, a rich pattern of relative growth emerges: the model generates convergence, divergence and leapfrogging along balanced growth equilibria, and also demonstrates why observed convergence rates may be substantially slower than those predicted by the standard neoclassical model.

Suggested Citation

  • Elias Dinopoulos & Peter Thompson, 1995. "Cyclical technological evolution and comparative economic growth," Estudios de Economia, University of Chile, Department of Economics, vol. 22(2 Year 19), pages 133-157, December.
  • Handle: RePEc:udc:esteco:v:22:y:1995:i:2:p:133-157

    Download full text from publisher

    File URL:
    Download Restriction: no


    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:udc:esteco:v:22:y:1995:i:2:p:133-157. 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: (VerĂ³nica Kunze). General contact details of provider: .

    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.