Workers, Machines, and Economic Growth

Abstract

This paper analyzes a model of economic growth, with technological innovations that reduce labor requirements but raise capital requirements. The paper has two main results. The first is that such technological innovations are not everywhere adopted, but only in countries with high productivity. The second result is that technology adoption significantly amplifies differences in productivity between countries. This paper can, therefore, add to our understanding of large and persistent international differences in output per capita. The model also helps to explain other growth phenomena, like divergence or periods of rapid growth.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 558 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.