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Technological Diffusion, Conditional Convergence, and Economic Growth

  • David E. Bloom
  • David Canning
  • Jaypee Sevilla

Technological diffusion implies a form of 'conditional convergence' as lagging countries catch up with technological leaders. We find strong evidence of technological diffusion but not full convergence; differences in total factor productivity (TFP) persist even in the long run due to differences in geography and institutions. TFP differentials explain a large part of cross-country income differences in our model; our estimates of the rate of return to capital, labor and schooling are completely consistent with micro-economic studies, implying the absence of externalities in aggregate production.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 8713.

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Date of creation: Jan 2002
Date of revision:
Handle: RePEc:nbr:nberwo:8713
Note: EFG PR
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