Castellacci, Fulvio (2005): Innovation, diffusion and cumulative causation: changes in the Spanish growth regime, 1960-2001.
Download (156kB) | Preview
This article presents a model of macroeconomic growth that combines in a single formalization two complementary views on innovation and economic growth, the technology-gap approach and the Kaldorian theory of cumulative causation. The model suggests that what matters for economic growth in the long run is the existence of a good match between the patterns of technological change, income distribution and demand growth. The model is estimated for the Spanish economy during the period 1960-2001, and the econometric results show that important changes have happened in its growth regime over time. Since the 1980s, innovation and diffusion of new technologies provide with a greater stimulus to productivity growth, but the technology push on the supply-side is not sustained by the prevailing patterns of income distribution and demand growth.
|Item Type:||MPRA Paper|
|Original Title:||Innovation, diffusion and cumulative causation: changes in the Spanish growth regime, 1960-2001|
|Keywords:||Innovation; diffusion; cumulative causation; economic growth|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development|
|Depositing User:||Fulvio Castellacci|
|Date Deposited:||21. Dec 2010 13:29|
|Last Modified:||12. Feb 2013 18:02|
Abramovitz, M. (1986) Catching-up, forging ahead and falling behind, Journal of Economic History, 46, pp.385-406.
Abramovitz, M. (1994) The origins of the Postwar Catch-up and Convergence Boom, in: J. Fagerberg et al. (Ed.) The dynamics of technology, trade and growth (Aldershot, Edward Elgar).
Aghion, P. & Howitt, P. (1992) A model of growth through creative destruction, Econometrica, 60, pp.323-351.
Alonso, J.A. (1999) Growth and the external constraint: Lessons from the Spanish case, Applied Economics, 31, pp.245-253
Amable, B. (1993) Catch-up and convergence in a model of cumulative growth, International Review of Applied Economics, 7, pp.1-25.
Boyer, R. (1988) Formalizing growth regimes, in: G. Dosi et al. (Ed.) Technical change and economic theory (London, Pinter).
Boyer, R. (2003) From the diversity of capitalisms to the variety of business models. A survey of the main findings in ‘Regulation Theory’, paper presented at the conference National Business Systems in the New Global Context: Competing Explanations of Economic Development and Organisations, Oslo, May 2003.
Boyer, R. & Petit, P. (1988) The cumulative growth model revisited, Political Economy. Studies in the Surplus Approach, 4(1), pp.23-44.
Boyer, R. & Petit, P. (1989) Kaldor’s growth theories: past, present and prospect for the future, in: E. Nell (Ed.) Nicholas Kaldor and the mainstream economics (London, Macmillan).
Cappelen A., Castellacci, F., Fagerberg J. & Verspagen, B. (2003) The impact of regional support on growth and convergence in the European Union, Journal of Common Market Studies, 41 (4), pp.621-644.
Castellacci, F. (2002) Technology-gap and cumulative growth: models and outcomes, International Review of Applied Economics, 16 (3), pp.333-346.
Castellacci, F., Grodal, S., Mendonca, S. & Wibe, M. (2005) Advances and challenges in innovation studies, Journal of Economic Issues, XXXIX, pp. 91-121.
Cornwall, J. (1977) Modern Capitalism, its Growth and Transformations (London, Martin Robertson).
Dixon, R. & Thirlwall, A.P. (1975) A model of regional growth-rate differences on Kaldorian lines, Oxford Economic Papers, 27, pp.201-213.
Fagerberg, J. (1987) A technology gap approach to why growth rates differ, Research policy, 16, pp.87-99.
Fagerberg, J. (1988) International competitiveness, Economic Journal, 98, pp.355-374.
Fagerberg, J. (1994) Technology and International differences in growth rates, Journal of Economic Literature, 32, pp.1147-1175.
Fagerberg, J. & Godinho, M. M. (2004) Innovation and Catching-up, in: J. Fagerberg, D. C. Mowery & R. R. Nelson (Eds.) The Oxford Handbook of Innovation (Oxford, Oxford University Press).
Farebrother, R. (1980) The Durbin-Watson test for serial correlation when there is no intercept in the regression, Econometrica, 48, pp.1553-1563.
Fonfría, A., Díaz, C., & Álvarez, I. (2002) The role of technology and competitiveness policies: a technology-gap approach, Journal of Interdisciplinary Economics, 13, pp.223-242.
Freeman, C., Clark, J. & Soete, L. (1982) Unemployment and technical innovation (London, Pinter).
Gerschenkron, A. (1962) Economic Backwardness in Historical Perspective (Cambridge, Harvard University Press).
Greene, W. (1997) Econometric Analysis, 3rd edn (Upper Saddle River, N.J., Prentice Hall)
Gujarati, D. N. (1970) Use of dummy variables in testing for equality between sets of coefficients in two linear regressions: a note, American Statistician, 24(1), pp.50-52.
Kaldor, N. (1957) A model of economic growth, Economic Journal, 67, pp.591-624.
Kaldor, N. (1981) The role of increasing returns, technical progress and cumulative causation in the theory of international trade and economic growth, Economie Appliquee, 34(4), pp.593-617.
Ledesma, M.A. (2002) Accumulation, Innovation and Catching-up: an Extended Cumulative Growth Model, Cambridge Journal of Economics, 26(2), pp.201-216.
Lucas, R. (1988) On the mechanics of economic development, Journal of Monetary Economics, 22, pp.3-42.
Myrdal, G. (1957) Economic Theory and Underdeveloped Regions (London, Duckworth).
Nelson, R. & Winter, S. (1982) An Evolutionary Theory of Economic Change (Cambridge, M.A., Harvard University Press).
Peracchi, F. (2001) Econometrics, Wiley, Chichester.
Pini, P. (1996) An integrated model of cumulative causation: empirical evidence for nine OECD countries, 1960-1990, Labour, X(1), pp.93-150
Romer, P. (1986) Increasing returns and long-run growth, Journal of Political Economy, 94, pp.1002-1037.
Romer, P. (1990) Endogenous technological change, Journal of Political Economy, 98, pp.71-102.
Rojo, L.A. (1987) La crisis en la economía española 1973-1984, in: J. Nadal, A. Carreras & C. Sudriá (Eds.) La Economía Española en el Siglo XX. Una Perspectiva Histórica (Barcelona, Ariel).
Simonetti, R., Taylor, K. & Vivarelli, M. (2000) Modelling the employment impact of innovation: do compensation mechanisms work?, in: M. Pianta & M. Vivarelli (Eds.) The Employment Impact of Innovation: Evidence and Policy (London, Routledge).
Solow, R. (1956) A contribution to the theory of economic growth, Quarterly Journal of Economics, 70, pp.65-94.
Tancioni, M. & Simonetti, R. (2002) A macroeconomic model for the analysis of the impact of technological change and trade on employment, Journal of Interdisciplinary Economics, 13, pp.185-221.
Targetti, F. & Foti, A. (1997) Growth and productivity: a model of cumulative growth and catching-up, Cambridge Journal of Economics, 21, pp.27-43.
Verspagen, B. (1991) A new empirical approach to catching up or falling behind, Structural change and economic dynamics, 2(2), pp.359-380.
Verspagen, B (1993) Uneven Growth Between Interdependent Economies: Evolutionary View on Technology-gaps, Trade and Growth (Avebury, Aldershot).
Vivarelli, M. (1995) The Economics of Technology and Employment. Theory and Empirical evidence (London, Edward Elgar).