Barriers and the transition to modern growth
By: L. Rachel Ngai.
Contributors: London School of Economics and Political Science. Centre for Economic Performance.
Series: [Discussion paper ;; no. 561]; Discussion paper (London School of Economics and Political Science. Centre for Economic Performance : Online) ;; no. 561.
Publisher: Centre for Economic Performance, London School of Economics and Political Science
Published: 2003
Place of publication: [London]
Language: eng
Format: Electronic resource
Subjects: Economic development -- Mathematical models.; Income -- Mathematical models.; Saving and investment -- Mathematical models.
Description: "This paper studies how differences in the size of barriers to capital accumulation can account for differences in long run economic development paths. In this model barriers affect both the beginning date and the pace of the modern economic growth. A fundamental property of the model is that cross country income differences matches the inverted U-shape pattern over time as observed in the data, hence implies a substantial fraction of existing income differences is really a transitional phenomenon. Relative to papers that model this as steady state phenomenon, my model requires a smaller size of barriers to account for current disparities. Another important finding is that this transitional effect increases significantly when I include the fact that today's low-income countries have had higher population growth rates during their early development stage than did the currently rich countries. In a quantitative exercise I find that given the beginning dates of modern growth, the model accounts for a significant portion of current income differences"--London School of Economics web site.
Notes: Includes bibliographical references.
Title from summary page as viewed on 1/6/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.