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Information Spillover and Economic Development

  • Nien-Huei Jiang

    ()

    (Department of Economics, Vanderbilt University)

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    This paper explores a new aspect of the relationship between backwardness and growth, "information spillover". If solving problems is a source of economic growth, then knowing which problems have been solved is per se valuable. A backward country will concentrate its problem-solving efforts on those problems that have been solved abroad. For countries with an intermediate level of human capital, this effect could be strong enough for them to grow faster than more advanced countries in the short run. However, for countries with low human capital, the same information is not as valuable and they will grow slowly or will even stay stagnant. Since it is not the absolute, but the relative human capital levels (of information receiver and provider) that determine growth rates, this model predicts a great variety of economic performance among backward countries.

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    File URL: http://www.accessecon.com/pubs/VUECON/vu00-w30.pdf
    File Function: First version, 2000
    Download Restriction: no

    Paper provided by Vanderbilt University Department of Economics in its series Vanderbilt University Department of Economics Working Papers with number 0030.

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    Date of creation: Jul 2000
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    Handle: RePEc:van:wpaper:0030
    Contact details of provider: Web page: http://www.vanderbilt.edu/econ/wparchive/index.html

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    1. Grossman, Gene M. & Helpman, Elhanan, 1991. "Trade, knowledge spillovers, and growth," European Economic Review, Elsevier, vol. 35(2-3), pages 517-526, April.
    2. Nelson, Richard R, 1981. "Research on Productivity Growth and Productivity Differences: Dead Ends and New Departures," Journal of Economic Literature, American Economic Association, vol. 19(3), pages 1029-64, September.
    3. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    4. Chuang, Yih-Chyi, 1998. "Learning by Doing, the Technology Gap, and Growth," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(3), pages 697-721, August.
    5. Richard R. Nelson & Edmond S. Phelps, 1965. "Investment in Humans, Technological Diffusion and Economic Growth," Cowles Foundation Discussion Papers 189, Cowles Foundation for Research in Economics, Yale University.
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