Using data from the last two centuries, we document two new facts: there has been convergence in adoption lags between rich and poor countries, while there has been divergence in penetration rates. Using a model of adoption and growth, we show that these changes in the pattern of technology diffusion account for 80% of the Great Income Divergence between rich and poor countries since 1820.
If Technology Has Arrived Everywhere, Why Has Income Diverged?
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We study the lags with which new technologies are adopted across countries, and their long-run penetration rates once they are adopted.
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- WhyHasIncomeDiverged (pdf, 3.19 MB)
- E01 Measurement and Data on National Income and Product Accounts and Wealth
- E13: General Aggregative Models: Neoclassical
- O1 Economic Development
- O14: Industrialization; Manufacturing and Service Industries; Choice of Technology
- O3 Innovation • Research and Development • Technological Change • Intellectual Property Rights
- O33 Technological Change: Choices and Consequences; Diffusion Processes
- O41 One, Two, and Multisector Growth Models