Catching Up and Falling Behind, a Vintage Model Approach

Anders Skonhoft ()

Journal of Evolutionary Economics, 1995, vol. 5, issue 3, 285-95

Abstract: The literature on catching up suggests that due to diffusion and imitation relatively backward countries should grow at a faster rate. A model along lines suggested by Abramovitz is constructed to examine this. A country's change in productivity (technological gap) is supposed to depend on the productivity gap itself (relatively backwardness), social capability of adopting new technology, and R&D activity. Together with a vintage growth model, this setup gives a lot of different possible explanations of why growth rates differ among nations. The possibilities of both catching up and falling behind are considered.

Date: 1995
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