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The evolution of productivity gaps and specialization patterns

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  • Los, Bart
  • Verspagen, Bart

    (Groningen University)

Abstract

The literature on catching-up based growth has developed mainly in isolation of other theories on technology and economic growth. This paper presents an industry-level technology gap model in which evolving specialization patterns are the endogenous result of innovation, international technology diffusion, learning-by-doing and balance-of-payments restricted growth. Differences between sectors with regard to their share in consumption are shown to reinforce or mitigate the effects of specialization on aggregate productivity convergence patterns, depending on the parameters. The implications of the model are studied by means of simulation analyses for a wide range of parameters.

Suggested Citation

  • Los, Bart & Verspagen, Bart, 2002. "The evolution of productivity gaps and specialization patterns," CCSO Working Papers 200301, University of Groningen, CCSO Centre for Economic Research.
    • Handle: RePEc:gro:rugccs:200301
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    File URL: http://irs.ub.rug.nl/ppn/244576084
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    References listed on IDEAS

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