Sources of Technological Divergence between Developed and Less Developed Economies

Sah, Raaj Kumar; Stiglitz, Joseph E.

Sources of Technological Divergence between Developed and Less Developed Economies

Debt, stabilization and development, edited by Guillermo Calvo, Ronald Findlay, Pentti Kouri and Jorge B. de Macedo. Chapter 19, pages 423-446. Basil Blackwell, Oxford, UK, 1989.

Princeton University, Department of Economics, Discussion Paper No. 22

52 Pages Posted: 27 Jun 2012

See all articles by Raaj Kumar Sah

Joseph E. Stiglitz

Columbia University - Columbia Business School, Finance; National Bureau of Economic Research (NBER)

There are 2 versions of this paper

Date Written: April 1, 1988

Abstract

This paper explores alternative explanations of why it is that the growth rates and income levels of various countries have not converged very fast -- if at all. The paper focuses on multiple social equilibrium; circumstances under which some societies may be characterized by high levels of innovation, and others by low levels, are identified. Which of the possible multiple equilibria and economy exhibits is partly a consequence of the economy's historical path. The sources of the positive feedbacks which give rise to multiple equilibria are discussed.

Suggested Citation: Suggested Citation

Sah, Raaj Kumar and Stiglitz, Joseph E., Sources of Technological Divergence between Developed and Less Developed Economies (April 1, 1988). Debt, stabilization and development, edited by Guillermo Calvo, Ronald Findlay, Pentti Kouri and Jorge B. de Macedo. Chapter 19, pages 423-446. Basil Blackwell, Oxford, UK, 1989., Princeton University, Department of Economics, Discussion Paper No. 22, Available at SSRN: https://ssrn.com/abstract=2086995