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on Economic Growth |
| By: | Tom Broekel; Torben Klarl; ; ; |
| Abstract: | Innovations are widely accepted as fundamental drivers of economic growth by increasing productivity and creating new markets. However, empirical evidence on the long-term relationship between technological progress and economic growth remains scarce, with few studies considering shifts in technologies’ fundamental properties, such as their degree of complexity. Yet, higher levels of complexity are argued to increase technologies’ economic potential, and consequently, ignoring this dimension of technologies provides an incomplete picture of innovations’ growth effects. We address this research gap by exploring the relationship between economic growth and technological complexity over more than 170 years in the United States (US). Utilizing patent data, the concept of the complexity frontier, and partial wavelet analysis, we find that economic growth has not been driven by patented innovation and technological complexity for most of this period. However, since the beginning of the ICT revolution in the 1990s, it has significantly contributed to GDP growth. |
| Keywords: | Innovation, Economic Growth, Technological Complexity, USA, Complexity Frontier, Wavelt Analysis |
| JEL: | O30 O47 N10 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2427 |
| By: | Ryo HORII |
| Abstract: | To explain the observed stability in real GDP growth, endogenous growth theories typically need a knife-edge degree of externality, which is not supported by microlevel observations.We develop a model where a constant number of new goods are introduced per unit of time and focus on the movement of prices and quantities after introduction.In this environment, positive real GDP growth, as measured by SNA statistics, does not necessarily mean exponential growth in the quantity, quality, or variety of final outputs. We derive the conditions under which measured growth can be sustained, which are less restrictive than typical knife-edge assumptions. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:cnn:wpaper:24-018e |
| By: | Grimaud, André; Gray, Elie |
| Abstract: | We formalize inter-sectoral knowledge diffusion in a standard fully endogenous Schumpeterian growth model. Each sector is simultaneously sending and receiving knowledge; thereby, to produce new knowledge, the research and development activity of each sector draws from a pool of knowledge which stems from this diffusion. This enables us to revisit the scale effects issue by revealing how this property (inconsistent with empirical evidence) relates with knowledge diffusion (the importance of which is empirically highlighted). We show that suppressing knowledge diffusion across sectors is a sufficient but not necessary condition for obtaining scale-invariancy. Then, we identify several sets of assumptions which enable us to obtain models which are reasonably consistent with empirical evidence both on scale effects and how knowledge diffuses in the economy. Specifically, these models do not exhibit scale effects (or at least not significant ones) while considering various scope of knowledge diffusion (including possible occurrence of general-purpose technologies). |
| Keywords: | Schumpeterian growth theory, Scale effects, Knowledge diffusion, Knowledge; spillovers, Non rivalry, echnological distance |
| JEL: | O30 O31 O33 O40 O41 |
| Date: | 2024–09–20 |
| URL: | https://d.repec.org/n?u=RePEc:tse:wpaper:129742 |
| By: | Mickael Melki; Hillel Rapoport; Enrico Spolaore; Romain Wacziarg |
| Abstract: | We argue that migrants played a significant role in the diffusion of the demographic transition from France to the rest of Europe in the late 19th century. Employing novel data on French immigration from other European regions from 1850 to 1930, we find that higher immigration to France translated into lower fertility in the region of origin after a few decades - both in cross-region regressions for various periods, and in a panel setting with region fixed effects. These results are robust to the inclusion of a variety of controls, and across multiple specifications. We also find that immigrants who themselves became French citizens achieved lower fertility, particularly those who moved to French regions with the lowest fertility levels. We interpret these findings in terms of cultural remittances, consistently with insights from a theoretical framework where migrants act as vectors of cultural diffusion, spreading new information, social norms and preferences pertaining to modern fertility to their regions of origin. |
| JEL: | J13 N33 Z10 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32990 |
| By: | Aquije Ballon, Harry Fernando; Bahia, Kalvin; Castells, Pau |
| Abstract: | While mobile technologies have already connected billions of people, the Internet of Things (IoT) is now adding all kinds of devices to the digital ecosystem. The potential benefits of connecting the physical world to the internet are vast, but not well understood. This study provides a contribution to quantify the contribution of IoT to economic growth. By leveraging a unique dataset that measures IoT connections by vertical industry across 163 countries between 2010 and 2022, we find that IoT made a significant contribution to GDP growth. On average, a 10 percentage point increase in IoT connections per inhabitant increased GDP by 0.7% in LMICs and 0.5% in HICs. We find that this impact is primarily driven by enterprise IoT, accounting for 80% of the total effect, while consumer IoT contributed 20%. |
| JEL: | O47 O33 L96 O11 O4 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302494 |
| By: | Riku Watanabe (Graduate School of Economics, Osaka University) |
| Abstract: | This study introduces uncertainty into a simple growth model of common capital accumulation by considering consumption externalities. We consider two equilibrium concepts, including the Markovperfect Nash equilibrium and cooperative solution, and examine how uncertainty affects the difference in the growth of common capital. Our results show that individuals’ attitudes toward uncertainty change depending on the consumption externality type. Consumption externality types exist wherein the expected growth rate of common capital increases as uncertainty increases. We conclude that the problem of the “tragedy of the commons†is improved by greater uncertainty if individuals demonstrate jealousy and “keeping up with the Joneses, †or admiration and “running away from the Joneses.†|
| Keywords: | Stochastic differential games; Resource extraction; Consumption externalities; Markovperfect Nash equilibrium |
| JEL: | C73 E21 Q20 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:osk:wpaper:2409 |
| By: | Roy, Tirthankar |
| Abstract: | The economic emergence of societies in arid and semi-arid tropical regions depended on their ability to extract and recycle water and manipulate the environment for this purpose. India is a prominent example of this process. This pathway to economic growth has significant political and environmental costs. In light of climate change, a key question for the future is: Is tropical development sustainable in this way? The paper answers by drawing on the economic history of the tropical arid regions and a recent literature on climate impact on water resources. |
| JEL: | N50 N55 O13 Q56 |
| Date: | 2024–10–07 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:wpaper:125641 |