ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
-A A +A

Technology, Learning, and Long-Run Economic Growth in Leading and Lagging Regions

This paper uses a dynamic model to study the effects of technology and learning on the long-run economic growth rates of a leading and a lagging region. New technologies are developed in the leading region but technological improvements in the lagging region are the result of learning from the leading region's technologies. The analysis sheds light on four salient questions. First, the paper determines the long-run growth rate of output per human capital unit in the leading region. Second, it defines a lagging to leading region technology ratio, study its stability properties, and then uses this ratio to ascertain the long-run growth rate of output per human capital unit in the lagging region. Third, for specific parameter values, it analyses the ratio of output per human capital unit in the lagging region to output per human capital unit in the leading region when both regions have converged to their balanced growth paths. Finally, the paper discusses the policy implications of our analysis and then offers suggestions for extending the research described here.



Subscribers please login to access full text of the article.

New 3 Month Subscription
to Digital Archives at

649for India

$20for overseas users

Get instant access to the complete EPW archives

Subscribe now

Comments

(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top