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Technology adoption, convergence, and divergence

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  • Sadik, Jacques

Abstract

A new mechanism to explain simultaneous convergence among industrialized countries and divergence between these countries and the rest of the world is presented. Specifically, the adoption of technologies, as embodied in machines, is examined in the context of a world in which capital goods are produced in a few centers and then exported. Since the local cost of introducing machines varies from region to region, technology is not adopted everywhere, and when it is adopted, its intensity varies from place to place. Technological progress diminishes the differences within the group of countries that adopt technologies but increases the gap between those countries and the rest of the world. The model is applied to cases of investment costs generated by deficient institutions and to transport costs. Its predictions are supported by recent research.

Suggested Citation

  • Sadik, Jacques, 2008. "Technology adoption, convergence, and divergence," European Economic Review, Elsevier, vol. 52(2), pages 338-355, February.
    • Handle: RePEc:eee:eecrev:v:52:y:2008:i:2:p:338-355
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    Cited by:

    1. Batabyal, Amitrajeet & Nijkamp, Peter, 2014. "Some properties of the technology gap between leading and lagging regions," MPRA Paper 71596, University Library of Munich, Germany.
    2. Amoroso, Sara & Martino, Roberto, 2020. "Regulations and technology gap in Europe: The role of firm dynamics," European Economic Review, Elsevier, vol. 129(C).
    3. Nadja Wirz, 2008. "Assessing the Role of Technology Adoption in China's Growth Performance," EPRU Working Paper Series 2008-06, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    4. Dong‐Hyeon Kim & Ho‐Chuan Huang & Shu‐Chin Lin & Chih‐Chuan Yeh, 2010. "Financial Development On Growth Convergence," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(4), pages 493-514, September.
    5. Christiane Schuppert & Nadja Wirz, 2008. "Public Education and Growth in Developing Countries," EPRU Working Paper Series 08-04, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    6. Nuria Esther Laguna Molina & Ana Urraca Ruiz, 2014. "Technological Specialization,Technological Convergence And Growth," Anais do XL Encontro Nacional de Economia [Proceedings of the 40th Brazilian Economics Meeting] 093, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].

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