Technological change and the wealth of nations

Gino Gancia and Fabrizio Zilibotti

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: We discuss a unified theory of directed technological change and technology adoption that can shed light on the causes of persistent productivity differences across countries. In our model, new technologies are designed in advanced countries and diffuse endogenously to less developed countries. Our framework is rich enough to highlight three broad reasons for productivity differences: inappropriate technologies, policy-induced barriers to technology adoption, and within-country misallocations across sectors due to policy distortions. We also discuss the effects of two aspects of globalization, trade in goods and migration, on the wealth of nations through their impact on the direction of technical progress. By doing so, we illustrate some of the equalizing and unequalizing forces of globalization.

Keywords: Barriers to Technology Adoption; Directed Technology Adoption; Endogenous Growth; Globalization; Human Capital; Inappropriate Technologies; Market Power; Political Economy; Skill-biased Technical Chan (search for similar items in EconPapers)
JEL-codes: F43 O11 O31 O33 O38 O41 O43 O47 (search for similar items in EconPapers)
Date: 2008-10
New Economics Papers: this item is included in nep-dev, nep-ino and nep-opm
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Citations: View citations in EconPapers (8)

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Related works:
Journal Article: Technological Change and the Wealth of Nations (2009)
Working Paper: Technological Change and the Wealth of Nations (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:1125

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