Cross-Country Income Differences and Technology Diffusion in a Competitive World

54 Pages Posted: 18 Dec 2008

See all articles by Andreas Irmen

Andreas Irmen

University of Luxembourg - Ceter for Research in Economic Analysis (CREA); CESifo (Center for Economic Studies and Ifo Institute for Economic Research), Munich

Date Written: December 2008

Abstract

This paper develops a new open-economy endogenous growth model where technology diffusion allows for a stable and non-degenerate world income distribution. In accordance with the empirical literature, I find that country characteristics such as the social infrastructure, the degree of openness, the investment rate, population growth, the level of human capital, or growth policies such as subsidies to innovation investments explain a country's position in the eventual world income distribution. Club convergence in growth rates can be traced back to a country's openness and to a minimum required level of human capital.

Keywords: capital accumulation, technology diffusion, neoclassical growth model

JEL Classification: O11, O33, O41

Suggested Citation

Irmen, Andreas, Cross-Country Income Differences and Technology Diffusion in a Competitive World (December 2008). CESifo Working Paper Series No. 2504. Available at SSRN: https://ssrn.com/abstract=1317723

Andreas Irmen (Contact Author)

University of Luxembourg - Ceter for Research in Economic Analysis (CREA) ( email )

162a, avenue de la Faïencerie
Luxembourg, L – 1511
Luxembourg

HOME PAGE: http://wwwen.uni.lu/recherche/fdef/crea/people/andreas_irmen

CESifo (Center for Economic Studies and Ifo Institute for Economic Research), Munich

Poschinger Str. 5
Munich, DE-81679
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
151
Abstract Views
363
rank
193,174
PlumX Metrics