IDEAS home Printed from https://ideas.repec.org/p/aal/abbswp/01-04.html
   My bibliography  Save this paper

A Technology-gap Approach to Cumulative Growth -Toward an Integrated Model Empirical Evidence for Spain, 1960-1997

Author

Listed:
  • Fulvio Castellacci

Abstract

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.

Suggested Citation

  • Fulvio Castellacci, 2001. "A Technology-gap Approach to Cumulative Growth -Toward an Integrated Model Empirical Evidence for Spain, 1960-1997," DRUID Working Papers 01-04, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  • Handle: RePEc:aal:abbswp:01-04
    as

    Download full text from publisher

    File URL: http://www3.druid.dk/wp/20010004.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Fagerberg, Jan, 1988. "International Competitiveness," Economic Journal, Royal Economic Society, vol. 98(391), pages 355-374, June.
    2. Fagerberg, Jan, 1987. "A technology gap approach to why growth rates differ," Research Policy, Elsevier, vol. 16(2-4), pages 87-99, August.
    3. 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.
    4. 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.
    5. Fagerberg, Jan, 1994. "Technology and International Differences in Growth Rates," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1147-1175, September.
    6. 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.
    7. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ali, Anesa & Pérez Caldentey, Esteban, 2007. "The comparative advantage fallacy and a rule for convergence," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    2. Steven Cassou & Emanuel Xavier de Oliveira, 2011. "Barriers to technological adoption in Spain and Portugal," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 10(3), pages 189-209, December.

    More about this item

    Keywords

    Cumulative growth; Innovation; Catching-up;

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

    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: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). General contact details of provider: http://www.druid.dk/ .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.