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The Weightless Economy in Economic Development

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  • Danny Quah

Abstract

Can the increasing significance of knowledge-products in national income - the growing weightless economy - influence economic development? Those technologies reduce 'distance' between consumers and knowledge production. This paper analyzes a model embodying such a reduction. The model shows how demand-side attributes - consumer attitudes on complex goods; training, education, and skills for consumption (rather than production) - can importantly affect patterns of economic growth and development. Evidence from the failed Industrial Revolution in 14th-century China illustrates the empirical relevance of the analysis.

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  • Danny Quah, 1999. "The Weightless Economy in Economic Development," CEP Discussion Papers dp0417, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp0417
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    References listed on IDEAS

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    1. Quah, Danny T, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," Economic Journal, Royal Economic Society, vol. 106(437), pages 1045-1055, July.
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    2. Andrea Bigano & Aleksander Śniegocki & Jacopo Zotti, 2016. "Policies for a More Dematerialized EU Economy. Theoretical Underpinnings, Political Context and Expected Feasibility," Sustainability, MDPI, vol. 8(8), pages 1-22, July.
    3. Wolfgang Keller & Stephen Ross Yeaple, 2013. "The Gravity of Knowledge," American Economic Review, American Economic Association, vol. 103(4), pages 1414-1444, June.
    4. Keller, Wolfgang, 2010. "International Trade, Foreign Direct Investment, and Technology Spillovers," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 793-829, Elsevier.
    5. Cigan, Heidi, 2002. "The Internet's Contribution to Progress and Growth in Germany: The Economic Impact of the Internet and the Price Structure of Access," Report Series 26072, Hamburg Institute of International Economics.
    6. Oldenski, Lindsay, 2012. "Export Versus FDI and the Communication of Complex Information," Journal of International Economics, Elsevier, vol. 87(2), pages 312-322.
    7. Brenner, M. Harvey, 2017. "Small networks, evolution of knowledge and species longevity: Theoretical integration and empirical test," Chaos, Solitons & Fractals, Elsevier, vol. 104(C), pages 314-322.
    8. Gern, Klaus-Jürgen & Gottschalk, Jan & Kamps, Christophe & Sander, Birgit & Scheide, Joachim & Strauß, Hubert, 2000. "Weltwirtschaft unter Volldampf," Open Access Publications from Kiel Institute for the World Economy 2499, Kiel Institute for the World Economy (IfW Kiel).
    9. Sun, Bing & Yang, Xueting & Zhong, Shen & Tian, Shengnan & Liang, Tian, 2024. "How do technology convergence and expansibility affect information technology diffusion? Evidence from the internet of things technology in China," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    10. Leonardo Becchetti & Fabrizio Adriani, 2005. "Does the digital divide matter? The role of information and communication technology in cross-country level and growth estimates," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(6), pages 435-453.
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    12. Humphreys, David, 2010. "The great metals boom: A retrospective," Resources Policy, Elsevier, vol. 35(1), pages 1-13, March.
    13. Caudillo Sanchez, Francisco, 2006. "Is information and communication technology (ICT) the right strategy for growth in Mexico?," Freiberg Working Papers 2006/17, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    14. Dalgaard, Carl-Johan & Strulik, Holger, 2011. "Energy distribution and economic growth," Resource and Energy Economics, Elsevier, vol. 33(4), pages 782-797.
    15. Cigan, Heidi, 2002. "The internet's contribution to progress and growth in Germany: The economic impact of the internet and the price structure of access," HWWA Reports 216, Hamburg Institute of International Economics (HWWA).
    16. Sandeep Kapur, 2002. "Developing Countries in the New Economy: The Role of Demand-side Initiatives," WIDER Working Paper Series DP2002-73, World Institute for Development Economic Research (UNU-WIDER).
    17. Frances Ruane & Ali Ugur, 2005. "Export Platform FDI and Dualistic Development," The Institute for International Integration Studies Discussion Paper Series iiisdp028, IIIS.
    18. Andrés Rodríguez-Pose, 2007. "The Rise of the “City-region” Concept and its Development Policy Implications," European Planning Studies, Taylor & Francis Journals, vol. 16(8), pages 1025-1046, December.
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