Technological diffusion, conditional convergence, and economic growth

Description

"Technological diffusion implies a form of 'conditional convergence' as lagging countries catch up with technological leaders. We find strong evidence of technological diffusion but not full convergence; differences in total factor productivity (TFP) persist even in the long run due to differences in geography and institutions. TFP differentials explain a large part of cross-country income differences in our model; our estimates of the rate of return to capital, labor and schooling are completely consistent with micro-economic studies, implying the absence of externalities in aggregate production"--National Bureau of Economic Research web site.

Subjects

Series Statement

• NBER working paper series ;
• working paper 8713
• Working paper series (National Bureau of Economic Research : Online) ;
• working paper no. 8713.

Links

• http://papers.nber.org/papers/W8713
• URL