A Technology-gap Approach to Cumulative Growth -Toward an Integrated Model Empirical Evidence for Spain, 1960-1997
The purpose of the present paper is to explore the possibility to compound in a unique formalization two different but complementary theories of technical change and macroeconomic growth, that is the Kaldorian idea of cumulative causation and the technology-gap approach to economic growth. . The main findings of the first three sections are: an higher rate of diffusion or creation of innovative activity in a country determines a higher and stable rate of productivity increase only if it is "sustained" by the technological characteristics of the system, by the prevailing type of investment of firms and by the distribution of the productivity increases between profit earners and wage perceivers. In other words, what matters for growth is not just innovation, accumulation or distribution, but their structural compatibility over time. Many different growth regimes are theoretically possible, but only some of them lead to a cumulative-technology-gap led growth. As a first experiment, the model has been empirically tested for the case of Spain in the period 1960-1997. The results of the estimations show that there has been a structural break with the transformation from a Kaldorian cumulative growth regime led by internal consumption, in the first period (1960-1975), to a technology-gap growth regime, in the second period (1982-1990). Hence, as a general conclusion for the case of Spain, the Kaldorian cumulative causation process and the technology-gap growth appear to be alternative rather than complementary explanations of economic growth. It is then necessary in future works to extend the empirical test of the model to a set of advanced countries, in order to investigate whether this conclusion is common to other countries, or rather it is peculiar to the evolution of the Spanish growth regime.
|Date of creation:||2001|
|Contact details of provider:|| Web page: http://www.druid.dk/|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fagerberg, Jan, 1988.
Royal Economic Society, vol. 98(391), pages 355-374, June.
- Fagerberg, Jan, 1994. "Technology and International Differences in Growth Rates," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1147-1175, September.
- Jan Fagerberg, 1999. "The Economic Challenge for Europe: Adapting to Innovation-Based Growth," Working Papers 2, Centre for Technology, Innovation and Culture, University of Oslo.
- Dalum, Bent & Laursen, Keld & Verspagen, Bart, 1999. "Does Specialization Matter for Growth?," Industrial and Corporate Change, Oxford University Press, vol. 8(2), pages 267-288, June.
- Fagerberg, Jan, 1987.
"A technology gap approach to why growth rates differ,"
Elsevier, vol. 16(2-4), pages 87-99, August.
- Jan Fagerberg, 1987. "A technology gap approach to why growth rates differ," Working Papers Archives 1987002, Centre for Technology, Innovation and Culture, University of Oslo.
- Fingleton, B & McCombie, J S L, 1998. "Increasing Returns and Economic Growth: Some Evidence for Manufacturing from the European Union Regions," Oxford Economic Papers, Oxford University Press, vol. 50(1), pages 89-105, January.
- Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(02), pages 385-406, June.
When requesting a correction, please mention this item's handle: RePEc:aal:abbswp:01-04. 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: (Keld Laursen)
If references are entirely missing, you can add them using this form.