The Great Divergence: A Network Approach
Ines Lindner () and
Holger Strulik ()
No 5638, CESifo Working Paper Series from CESifo Group Munich
We present a multi-country theory of economic growth in which countries are connected by a network of mutual knowledge exchange. Knowledge in any country depends on the human capital of the countries it exchanges knowledge with. The diffusion of knowledge throughout the world explains a period of increasing world inequality after the take-off of the forerunners of the industrial revolution, followed by decreasing relative inequality. Knowledge diffusion through a Small World network explains the ‘New Kaldor facts’ and produces an extraordinary diversity of country growth performances, including the overtaking of individual countries in the course of world development.
Keywords: networks; knowledge diffusion; economic growth; world income distribution (search for similar items in EconPapers)
JEL-codes: O10 O40 D62 D85 F41 (search for similar items in EconPapers)
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Working Paper: The Great Divergence: A Network Approach (2015)
Working Paper: The Great Divergence: A Network Approach (2014)
Working Paper: The great divergence: A network approach (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_5638
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