TY - JOUR
T1 - Appropriate technology in a Solovian nonlinear growth model
AU - Lavezzi, Andrea Mario
AU - Fiaschi, Davide
PY - 2007
Y1 - 2007
N2 - We propose a Solovian growth model with a convex-concave production function and international technological spillovers. We test the empirical implications of the model, analysing the effects of the productivity slowdown that followed the oil shocks of the 1970s. We argue that this slowdown, altering the world income distribution, affected the pattern of international technological spillovers, taking the poorest countries further away from the technological leaders, and therefore unable to exploit their technologies. The result is the emergence of a poverty trap for low-income countries.
AB - We propose a Solovian growth model with a convex-concave production function and international technological spillovers. We test the empirical implications of the model, analysing the effects of the productivity slowdown that followed the oil shocks of the 1970s. We argue that this slowdown, altering the world income distribution, affected the pattern of international technological spillovers, taking the poorest countries further away from the technological leaders, and therefore unable to exploit their technologies. The result is the emergence of a poverty trap for low-income countries.
KW - convex-concave production function
KW - distribution dynamics
KW - international technological spillovers
KW - productivity slowdown
KW - convex-concave production function
KW - distribution dynamics
KW - international technological spillovers
KW - productivity slowdown
UR - http://hdl.handle.net/10447/26756
M3 - Article
VL - 23
SP - 115
EP - 133
JO - Oxford Review of Economic Policy
JF - Oxford Review of Economic Policy
SN - 0266-903X
ER -