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Impact of International Technological-Knowledge Diffusion on Southern Convergence


  • Oscar Afonso

    () (Faculdade de Economia Universidade do Porto)

  • Paulo B Vasconcelos

    (Universidade do Porto)


In the standard models of North-South technological-knowledge diffusion, the larger the initial technological-knowledge gap between countries is, the higher the Southern catching up. However, this result does not adjust well to Southern reality as a whole. The purpose of this paper is to demonstrate that the disparity between the theoretical outcome and the empirical findings can be reduced by considering that: (i) the South can only imitate Northern technological knowledge when it is sufficiently close to the Northern frontier; (ii) the advantage of the South's moderate backwardness, together with its imitation capacity, is a mechanism of catching up with the North; and (iii) the Southern catching-up specification can be country specific. In particular, we show that the behavior of the South's relative level of employed human capital affects Southern imitation capacity and depends on the catching-up specifications

Suggested Citation

  • Oscar Afonso & Paulo B Vasconcelos, 2006. "Impact of International Technological-Knowledge Diffusion on Southern Convergence," Computing in Economics and Finance 2006 224, Society for Computational Economics.
  • Handle: RePEc:sce:scecfa:224

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    More about this item


    North-South; R&D; Human Capital; Convergence; Numerical Computations;

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development


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