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Cross-Country Income Differences and Technology Diffusion in a Competitive World


  • Andreas Irmen

    () (University of Heidelberg, Department of Economics)


This paper develops a new open-economy endogenous growth model where technology diffusion allows for a stable and non-degenerate world income distribution. In accordance with the empirical literature, I find that country characteristics such as the social infrastructure, the degree of openness, the investment rate, population growth, the level of human capital, or growth policies such as subsidies to innovation investments explain a country’s position in the eventual world income distribution. Club convergence in growth rates can be traced back to a country’s openness and to a minimum required level of human capital.

Suggested Citation

  • Andreas Irmen, 2008. "Cross-Country Income Differences and Technology Diffusion in a Competitive World," Working Papers 0480, University of Heidelberg, Department of Economics, revised Dec 2008.
  • Handle: RePEc:awi:wpaper:0480

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    References listed on IDEAS

    1. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 83-116.
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    More about this item


    Capital Accumulation; Technology Diffusion; Neoclassical GrowthModel;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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