Quality of Knowledge Technology, Returns to Production Technology and Economic Development

Cuong Le van and Çağrı Sağlam

No 2002004, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: Presenting a discrete time version of the Romer (1986) model, this paper analyzes optimal paths in a one-sector growth model when the technology is not convex. We prove that for a given quality of knowledge technology, the countries could take-off if their initial stock of capital are above a critical level; otherwise they could face a poverty-trap. We show that for an economy which wants to take-off by means of knowledge technology requires three factors : large amount of initial knowledge, small fixed costs and a good quality of knowledge technology.

Keywords: Optimal Growth; optimal path; value fuction; poverty-trap; increasing returns (search for similar items in EconPapers)
JEL-codes: C61 O12 O32 O41 (search for similar items in EconPapers)
Pages: 14
Date: 2001-11-01
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http://sites.uclouvain.be/econ/DP/IRES/2002-4.pdf (application/pdf)

Related works:
Journal Article: QUALITY OF KNOWLEDGE TECHNOLOGY, RETURNS TO PRODUCTION TECHNOLOGY, AND ECONOMIC DEVELOPMENT (2004)
Working Paper: Quality of knowledge technology, returns to production technology, and economic development (2004)
Working Paper: Quality of Knowledge Technology, Returns to Production Technology and Economic Development (2004)
Working Paper: Quality of Knowledge Technology, Returns to Production Technology and Economic Development (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvir:2002004

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