Technology Transfer and External Shocks: Developing Country Growth from 1960 to 1990

GEP Research Paper No. 2002/05

Posted: 22 Jul 2003

See all articles by Norman Gemmell

Norman Gemmell

Victoria University of Wellington - Victoria Business School

Richard Kneller

University of Nottingham

Date Written: June 2002

Abstract

The post-war growth experience of developing countries is characterised by three main features. Firstly, enormous divergence between the best and worst performers. Secondly, low persistence in growth rates across time, and finally a general decline in the average growth rate across all countries. Our evidence suggests that these patterns in the data are consistent with a technological growth model that is subject to random shocks. External shocks explain the variability of LDCs productivity growth rates, but only over the short-run: within 5 years; whereas faster growth of the technical frontier in innovating countries is associated with faster productivity growth in LDCs on average over the long-run. There are good reasons for believing that this reflects technology spillovers, and not simply demand effects.

JEL Classification: 030, 050, 011

Suggested Citation

Gemmell, Norman and Kneller, Richard, Technology Transfer and External Shocks: Developing Country Growth from 1960 to 1990 (June 2002). GEP Research Paper No. 2002/05. Available at SSRN: https://ssrn.com/abstract=410747

Norman Gemmell (Contact Author)

Victoria University of Wellington - Victoria Business School ( email )

PO Box 600
Wellington 6140
New Zealand

Richard Kneller

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

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