A Note on Barriers to Capital Accumulation and Income

John Landon-Lane () and Peter Robertson

Departmental Working Papers from Rutgers University, Department of Economics

Abstract: In this paper we clarify the impact that barriers to capital accumulation can have on a two-sector neoclassical growth model's ability to explain the observed differences in incomes across countries. We show that the effect of barriers to technology adoption in a two sector model is necessarily identical to a one-sector model when there are no factor market imperfections and each sector has identical technologies. We also show that this result generalizes to the case when the technologies are different across the sectors.

Keywords: Economic Growth; Economic Development; Barriers; Capital Accumulation (search for similar items in EconPapers)
JEL-codes: F0 O0 O4 (search for similar items in EconPapers)
Date: 2005-11-10
New Economics Papers: this item is included in nep-dev
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Persistent link: https://EconPapers.repec.org/RePEc:rut:rutres:200509

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