If Technology Has Arrived Everywhere, Why has Income Diverged?

Diego Comín · Martí Mestieri Ferrer

108 citations0/0 files storedNational Bureau of Economic Research

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Economic Growth and Productivity Historical Economic and Social Studies Economic Development and Digital Transformation

Abstract

We study the lags with which new technologies are adopted across countries, and their long-run penetration rates once they are adopted.Using data from the last two centuries, we document two new facts: there has been convergence in adoption lags between rich and poor countries, while there has been divergence in penetration rates.Using a model of adoption and growth, we show that these changes in the pattern of technology diffusion account for 80% of the Great Income Divergence between rich and poor countries since 1820.

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References

2000Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond 1990The lever of riches: technological creativity and economic progress 2000The Great Divergence: China, Europe, and the Making of the Modern World Economy 1997Returns to Scale in U.S. Production: Estimates and Implications 1997Divergence, Big Time 1995Technological Diffusion, Convergence, and Growth 1991The Lever of Riches: Technological Creativity and Economic Progress.2010An Exploration of Technology Diffusion

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