The Appropriate Technology Frontier - Lessons for the Developing World
This paper presents a model of a developing economy that endogenizes both technological biases and demographic trends. As knowledge diffuses from foreign R&D-producing regions, potential innovators decide which technologies to develop after considering available factors of production, and individuals decide the quality and quantity of their children after considering available technologies. This interaction creates multiple growth paths- some economies develop labor-intensive techniques and expand the pool of unskilled labor; others grow into societies of highly skilled individuals and expanding outputs per capita. I find that if developing countries wish to achieve good prospects for income convergence, they should promote the flow of knowledge from the most developed regions, even if this results initially in a technology-skill mismatch. Such knowledge flows are more likely to promote the twin growths in human capital and technologies characteristic of the biggest economic success stories.
|Date of creation:||Dec 2007|
|Date of revision:|
|Contact details of provider:|| Postal: 589 McNair Road, Annapolis, MD 21402-5030|
Phone: (410) 293-6800
Fax: (410) 293-6899
Web page: http://www.usna.edu/EconDept/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:usn:usnawp:16. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.