Equipment Investment and Growth In Developing Countries

Lutz Hendricks (hendricksl@protonmail.com)

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: Abstract Currently Unavailable. Differences in equipment investment or equipment prices account for large variations in growth rates across countries. An important task is to understand the economic mechanism underlying the equipment-growth nexus and its policy implications. In order to study this issue, this paper develops a model in which growth is driven by the adoption of technologies that are embodied in equipment. I show that this model can quantitatively account for the observed cross-country relationships between equipment investment, equipment prices, and growth. I find that the competitive equilibrium is characterized by inefficiently low levels of learning and too slow growth and study which policies are able to remedy this inefficiency.

Date: 2000-01-01
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Citations: View citations in EconPapers (23)

Published in Journal of Development Economics 2000, vol. 61, pp. 335-364

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Journal Article: Equipment investment and growth in developing countries (2000)
Working Paper: Equipment Investment and Growth In Developing Countries
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Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:11932

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