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
Date Written: April 1, 1988
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.
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