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Externalities and Growth
Open accessAbstract
Externalities play a central role in most theories of economic growth.We argue that international externalities, in particular, are essential for explaining a number of empirical regularities about growth and development.Foremost among these is that many countries appear to share a common long run growth rate despite persistently different rates of investment in physical capital, human capital, and research.With this motivation, we construct a hybrid of some prominent growth models that have international knowledge externalities.When calibrated, the hybrid model does a surprisingly good job of generating realistic dispersion of income levels with modest barriers to technology adoption.Human capital and physical capital contribute to income differences both directly (as usual), and indirectly by boosting resources devoted to technology adoption.The model implies that most of income above subsistence is made possible by international diffusion of knowledge.
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“A Model of Growth: Through Creative Destruction”
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Measuring the Social Return to R&D
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Brain Drain and Human Capital Formation in Developing Countries: Winners and Losers
Beine, M., Docquier, F., & Rapoport, H. (2008) · The Economic Journal · doi:10.1111/j.1468-0297.2008.02135.x · Cited by 1,112
Caselli, F., & Coleman, W. J. (2006) · American Economic Review · doi:10.1257/aer.96.3.499 · Cited by 676
Growth, technological interdependence and spatial externalities: theory and evidence
Ertur, C., & Koch, W. (2007) · Journal of Applied Econometrics · doi:10.1002/jae.963 · Cited by 622
Rodrik, D. (2008) · doi:10.1596/28009 · Cited by 471
Human Capital, the Structure of Production, and Growth
Ciccone, A., & Papaioannou, E. (2009) · Review of Economics and Statistics · doi:10.1162/rest.91.1.66 · Cited by 388
Metadata
- Authors
- Klenow, P., & Rodriguez-Clare, A.
- Venue
- National Bureau of Economic Research
- Publisher
- National Bureau of Economic Research
- Published
- 2004-12
- Pages
- 817-861
- OpenAlex
- W2149374385
- Cited by
- 295
- References
- 10
- Type
- report
- Language
- en
- Open access
- green
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