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Catching Up: What are the critical factors for success?

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  • Jan Fagerberg
  • Martin Srholec

Abstract

This paper addresses one ofthe oldest and most controversial issues in economics: Why do some countries succeed in catching up, while others fall behind? In recent years the quality and availability of data on different aspects of development have improved a lot. Attempting to exploit this opportunity for more indepth research the paper starts with an overview and assessment of the different approaches in the literature and the empirical indicators and methods that these have given rise to. This leads to the formulation of a synthetic empirical model and, with the help of factor analysis on large variable set, to the identification of set of “capabilities” which might be assumed to be of critical importance for catch up. The explanatory power of these capabilities for economic growth is tested on a sample of 135 countries in the 1990s

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  • Jan Fagerberg & Martin Srholec, 2007. "Catching Up: What are the critical factors for success?," Globelics Working Paper Series 2007-07, Globelics - Global Network for Economics of Learning, Innovation, and Competence Building Systems, Aalborg University, Department of Business and Management.
  • Handle: RePEc:aal:glowps:2007-07
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    Cited by:

    1. Jan Fagerberg & Martin Srholec, 2017. "Capabilities, economic development, sustainability," Cambridge Journal of Economics, Oxford University Press, vol. 41(3), pages 905-926.
    2. Jan Fagerberg & Maryann Feldman & Martin Srholec, 2011. "Technological Dynamics and Social Capability: Comparing U.S. States and European Nations," Working Papers on Innovation Studies 20111114, Centre for Technology, Innovation and Culture, University of Oslo.
    3. Jorge Niosi, 2010. "Building National and Regional Innovation Systems," Books, Edward Elgar Publishing, number 14006.
    4. Gulshan Farooq BHAT & Dr. Sandeep Kaur BHATIA, 2017. "An Empirical Analysis Of Growth Determinants In India And South Korea: Possible Lessons For India," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 17(2), pages 155-174.
    5. Christos N. Pitelis, 2011. "Foreign Direct Investment and Economic Integration," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume III, chapter 1, Edward Elgar Publishing.
    6. Tilman Altenburg & Wilfried Lütkenhorst, 2015. "Industrial Policy in Developing Countries," Books, Edward Elgar Publishing, number 14726.
    7. Christos N. Pitelis, 2009. "The Sustainable Competitive Advantage and Catching-up of Nations: FDI, Clusters and the Liability (Asset) of Smallness," Management International Review, Springer, vol. 49(1), pages 95-120, February.
    8. Jan Fagerberg, 2010. "The Changing Global Economic Landscape: The Factors that Matter," Chapters, in: Robert M. Solow & Jean-Philippe Touffut (ed.), The Shape of the Division of Labour, chapter 1, Edward Elgar Publishing.
    9. Jan Fagerberg & Martin Srholec, 2009. "Knowledge, Capabilities and the Poverty Trap: The Complex Interplay Between Technological, Social and Geographical Factors," ICER Working Papers 24-2009, ICER - International Centre for Economic Research.
    10. Rumen Dobrinsky, 2009. "The Paradigm of Knowledge-Oriented Industrial Policy," Journal of Industry, Competition and Trade, Springer, vol. 9(4), pages 273-305, December.
    11. Fagerberg , Jan & Srholec , Martin, 2015. "Capabilities, Competitiveness, Nations," Papers in Innovation Studies 2015/2, Lund University, CIRCLE - Centre for Innovation Research.

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    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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