Explore by…

More

If Technology Has Arrived Everywhere, Why Has Income Diverged?

Download paper


We study the lags with which new technologies are adopted across countries, and their long-run penetration rates once they are adopted.

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.