Abstract
The aim of this paper is to investigate cross-country patterns of economic divergence in an evolutionary perspective. We propose a simple open economy evolutionary model of growth where the growth variables of each country are microfounded on the dynamics of national firms. The model finds its antecedents in some of the evolutionary models of economic growth developed over the past years. We claim that evolutionary models are able to account for persistent differentiation in the growth performances of countries as a generic property. In fact, the model proposed here does so despite its quite simplified structure.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Alexander S (1952) The Effects of Devaluation on a Trade Balance. IMF Staff Paper
Arthur WB (1994) Increasing Returns and Path-Dependence in the Economy. University of Michigan Press, Ann Arbor
Caniëls MCJ, Verspagen B (2001) Barriers to knowledge spillovers and regional convergence in an evolutionary model. Journal of Evolutionary Economics, 11: 307–329
Chiaromonte F, Dosi G (1993) Heterogeneity, competition and macroeconomic dynamics. Structural change and Economic Dynamics, 4: 39–63
Coriat B, Dosi G (1998) The Institutional Embeddedness of Economic Change. An Appraisal of the “Evolutionary” and the “Regulationist” Research Programs. In: Nielsen K, Johnson B (eds.) Institutions and Economic Change, Edward Elgar, Cheltenham, UK
David P (1975) Technical choice, innovation and economic growth. Cambridge University Press, Cambridge, MA
De Long BJ (1988) Productivity growth, convergence and welfare. American Economic Review, 78: 1138–54
Dosi G (1988) Sources, Procedures and Microeconomic Effects of Innovation. Journal of Economic Literature, 26: 1120–71
Dosi G, Fabiani S, Aversi R, Meacci M (1994) The dynamics of international differentiation: a multicountry evolutionary model. Industrial and Corporate Change, 3: 225–242
Dosi G, Winter SG (2002) Interpreting economic change: evolution, structures and games. In: Augier M, March J (eds.) The Economics of Choice, Change and Organizations: Essays in Memory of Richard M. Cyert, Edward Elgar, Cheltenham, UK
Easterly W, King R, Levine R, Rebelo S (1992) How do national policies affect long-run growth? A research agenda. World Bank, Discussion paper
Eaton J, Kortum SS (2001) Technology, trade and growth: a unified framework. European Economic Review, papers and proceedings, 45: 742–755
Grossman G, Helpman E (1991) Innovation and growth in the global economy. MIT Press, Cambridge, MA
Keller W (2000) Do Trade Patterns and Technology Flows Affect Productivity Growth? World Bank Economic Review, 14: 17–47
Kwasnicki W (2001) Comparative analysis of selected neo-schumpeterian models of industrial dynamics. presented at the ‘Nelson and Winter conference’, Aalborg, June 2001
Metcalfe JS (1988) The diffusion of innovation: an interpretative survey. In: Dosi G, Freeman C, Nelson R, Silverberg G, Soete L (eds.) Technical Change and Economic Theory, Pinter Publisher, London
Nelson RR, Winter SG (1982) An evolutionary theory of economic change. Harvard University Press, Cambridge, MA
Quah D (1996) Twin peaks: growth and convergence in models of distribution dynamics. Economic Journal, 106: 1045–1055
Romer PM (1994) The Origins of Endogenous Growth. Journal of Economic Perspectives, 8: 3–22
Silverberg G, Dosi G, Orsenigo L (1988) Innovation, diversity and diffusion: a self-organization model. The Economic Journal, 98: 1032–1054
Silverberg G, Verspagen B (1995) Evolutionary theorizing on economic growth. IIASA working paper 95-78, forthcoming in K. Dopfer (2004), The Evolutionary Principles of Economics, Cambridge University Press, Cambridge
Soete L, Verspagen B (1993) Technology and growth: the complex dynamics of catching up, falling behind and taking over. In: Szirmai A, van Ark B, Pilat D (eds.) Explaining Economic Growth, Elsevier Science Publishers, Amsterdam
Temple J (1999) The New Growth Evidence. Journal of Economic Literature, 37: 112–156
Verspagen B (1993) Uneven Growth between Interdependent Economies: an Evolutionary View on Technology Gaps, Trade, and Growth. Ashgate Pub., Avebury, Aldershot, UK
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2005 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Castaldi, C. (2005). An evolutionary model of international competition and growth. In: Cantner, U., Dinopoulos, E., Lanzillotti, R.F. (eds) Entrepreneurships, the New Economy and Public Policy. Springer, Berlin, Heidelberg. https://doi.org/10.1007/3-540-26994-0_14
Download citation
DOI: https://doi.org/10.1007/3-540-26994-0_14
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-22613-0
Online ISBN: 978-3-540-26994-6
eBook Packages: Business and EconomicsEconomics and Finance (R0)