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Endogenous Growth and Cross-Country Income Differences
Abstract
A multicountry Schumpeterian growth model is constructed. Because of technology transfer, R&D-performing countries converge to parallel growth paths; other countries stagnate. A parameter change that would have raised a country's growth rate in standard Schumpeterian theory will permanently raise its productivity and per capita income relative to other countries and raise the world growth rate. Transitional dynamics are analyzed for each country and for the world economy. Steady-state income differences obey the same equation as in neoclassical theory, but since R&D is positively correlated with investment rates, capital accumulation accounts for less than estimated by neoclassical theory. (JEL E10, O40)
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Cites
“A Model of Growth: Through Creative Destruction”
Aghion, P., & Howitt, P. (1992) · Econometrica · doi:10.2307/2951599 · Cited by 7,529
Self-citation
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Acemoglu, D., Aghion, P., & Zilibotti, F. (2006) · Journal of the European Economic Association · doi:10.1162/jeea.2006.4.1.37 · Cited by 1,507
Geographic Localization of International Technology Diffusion
Keller, W. (2002) · American Economic Review · doi:10.1257/000282802760015630 · Cited by 1,227
The Effect of Financial Development on Convergence: Theory and Evidence*
Aghion, P., Howitt, P., & Mayer-Foulkes, D. (2005) · Quarterly Journal of Economics · doi:10.1162/qjec.2005.120.1.173 · Cited by 962
Self-citationQamruzzaman, M., & Jianguo, W. (2018) · Financial Innovation · doi:10.1186/s40854-018-0103-3 · Cited by 92
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Metadata
- Authors
- Howitt, P.
- Venue
- American Economic Review
- Publisher
- American Economic Association
- Published
- 2000-09-01
- Volume
- 90
- Issue
- 4
- Pages
- 829-846
- ISSN
- 0002-8282 (ISSN-L)
- OpenAlex
- W2065155622
- Cited by
- 676
- References
- 1
- FWCI
- 43.29
- Type
- journal article
- Language
- en
- Open access
- closed
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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