IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/71596.html
   My bibliography  Save this paper

Some properties of the technology gap between leading and lagging regions

Author

Listed:
  • Batabyal, Amitrajeet
  • Nijkamp, Peter

Abstract

We theoretically analyze some properties of the technology gap between leading and lagging regions studied recently by Batabyal and Nijkamp [1]. New technologies are developed in the leading region. The lagging region does not conduct research and development (R & D) but uses the leading region’s technology with a temporal gap of τ > 0 time periods. We first use a model with a single factor of production, human capital, to study the relationship between the technology gap τ and the difference in the growth rates of output per human capital unit in the leading and in the lagging region. Next, we introduce a second factor of production, physical capital, and use a variant of the Solow growth model to shed light on two issues. We show that despite the existence of the technology gap, on the balanced growth path (BGP), the physical to effective human capital ratio is identical in both regions. Finally, we demonstrate that introducing a second factor of production does not alter the relationship between the technology gap τ and the difference in the growth rates of output per human capital unit in the two regions.

Suggested Citation

  • Batabyal, Amitrajeet & Nijkamp, Peter, 2014. "Some properties of the technology gap between leading and lagging regions," MPRA Paper 71596, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:71596
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/71596/1/MPRA_paper_71596.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Borota, Teodora, 2012. "Innovation and imitation in a model of North–South trade," Journal of International Economics, Elsevier, vol. 87(2), pages 365-376.
    2. Sadik, Jacques, 2008. "Technology adoption, convergence, and divergence," European Economic Review, Elsevier, vol. 52(2), pages 338-355, February.
    3. Castellacci, Fulvio, 2008. "Technology clubs, technology gaps and growth trajectories," Structural Change and Economic Dynamics, Elsevier, vol. 19(4), pages 301-314, December.
    4. Nocco, Antonella, 2005. "The rise and fall of regional inequalities with technological differences and knowledge spillovers," Regional Science and Urban Economics, Elsevier, vol. 35(5), pages 542-569, September.
    5. Lall, Somik V. & Timmins, Christopher & Yu, Shouyue, 2009. "Connecting lagging and leading regions : the role of labor mobility," Policy Research Working Paper Series 4843, The World Bank.
    6. Klaus Desmet & Ignacio Ortuño Ortín, 2007. "Rational Underdevelopment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(1), pages 1-24, March.
    7. Kaliappa Kalirajan, 2004. "Economic reform and the transmission of growth impulses across Indian states," International Journal of Social Economics, Emerald Group Publishing, vol. 31(5/6), pages 623-636, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Amitrajeet A. Batabyal & Peter Nijkamp, 2019. "The magnification of a lagging region’s initial economic disadvantages on the balanced growth path," Asia-Pacific Journal of Regional Science, Springer, vol. 3(3), pages 719-730, October.
    2. Amitrajeet A. Batabyal & Peter Nijkamp, 2020. "Workplace choice, commuting costs, and wage taxation in urban and adjacent rural regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(3), pages 775-786, December.
    3. Amitrajeet A. Batabyal & Hamid Beladi, 2019. "Preference matching, income, and population distribution in urban and adjacent rural regions," Papers in Regional Science, Wiley Blackwell, vol. 98(5), pages 2201-2208, October.
    4. Amitrajeet A. BATABYAL, 2018. "Note On Local Public Good Induced Spillovers Between A Leading And A Lagging Region," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 11-16, July.
    5. Batabyal, Amitrajeet & Yoo, Seung Jick, 2019. "Heterogeneity and the Provision of a Public Good in Leading and Lagging Regions," MPRA Paper 96812, University Library of Munich, Germany, revised 15 Sep 2019.
    6. Batabyal, Amitrajeet A. & Beladi, Hamid, 2015. "Knowledge goods, ordinary goods, and the effects of trade between leading and lagging regions," Research Policy, Elsevier, vol. 44(8), pages 1537-1542.
    7. Amitrajeet A. Batabyal & Hamid Beladi, 2021. "Interregional demand for workers and the effects of labour income taxation," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 1042-1050, June.
    8. Thomas Ejdemo & Daniel Örtqvist, 2021. "Exploring a leading and lagging regions dichotomy: does entrepreneurship and diversity explain it?," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-26, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Amit Batabyal & Peter Nijkamp, 2014. "Technology, Learning, and Long Run Economic Growth in Leading and Lagging Regions," ERSA conference papers ersa14p893, European Regional Science Association.
    2. Batabyal, Amitrajeet & Yoo, Seung Jick, 2019. "Heterogeneity and the Provision of a Public Good in Leading and Lagging Regions," MPRA Paper 96812, University Library of Munich, Germany, revised 15 Sep 2019.
    3. Batabyal, Amitrajeet A. & Beladi, Hamid, 2015. "Knowledge goods, ordinary goods, and the effects of trade between leading and lagging regions," Research Policy, Elsevier, vol. 44(8), pages 1537-1542.
    4. Amitrajeet A. Batabyal & Peter Nijkamp, 2019. "The magnification of a lagging region’s initial economic disadvantages on the balanced growth path," Asia-Pacific Journal of Regional Science, Springer, vol. 3(3), pages 719-730, October.
    5. Ewa Lechman, 2012. "Technology convergence and digital divides. A country-level evidence for the period 2000–2010," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 31.
    6. Stöllinger, Roman, 2013. "International spillovers in a world of technology clubs," Structural Change and Economic Dynamics, Elsevier, vol. 27(C), pages 19-35.
    7. Christos Ap. LADIAS & Filipos RUXHO & Fernando Jos? Calado e Silva Nunes TEIXEIRA & Susana Soares Pinheiro Vieira PESCADA, 2023. "The Regional Economic Indicators And Economic Development Of Kosovo," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 73-83, June.
    8. World Bank, 2004. "Sri Lanka - Reshaping Economic Geography : Connecting People to Prosperity," World Bank Publications - Books, The World Bank Group, number 21549.
    9. Brock, William A. & Xepapadeas, Anastasios & Yannacopoulos, Athanasios N., 2014. "Optimal agglomerations in dynamic economics," Journal of Mathematical Economics, Elsevier, vol. 53(C), pages 1-15.
    10. repec:wsr:wpaper:y:2013:i:114 is not listed on IDEAS
    11. Castellacci, Fulvio & Natera, Jose Miguel, 2013. "The dynamics of national innovation systems: A panel cointegration analysis of the coevolution between innovative capability and absorptive capacity," Research Policy, Elsevier, vol. 42(3), pages 579-594.
    12. Daria Ciriaci & Daniela Palma, 2012. "To what extent are knowledge-intensive business services contributing to manufacturing? A subsystem analysis," JRC Research Reports JRC71097, Joint Research Centre, revised Aug 2012.
    13. David Mayer-Foulkes, 2013. "A Cross-country Causal Panorama of Human Development and Sustainability," Review of Development Economics, Wiley Blackwell, vol. 17(2), pages 235-251, May.
    14. Voxi Heinrich Amavilah & Antonio Rodríguez Andrés, 2024. "Knowledge Economy and the Economic Performance of African Countries: A Seemingly Unrelated and Recursive Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 110-143, March.
    15. Busso, Matias & Chauvin, Juan Pablo & Herrera L., Nicolás, 2021. "Rural-urban migration at high urbanization levels," Regional Science and Urban Economics, Elsevier, vol. 91(C).
    16. Charles Shaaba Saba & Oladipo Olalekan David, 2023. "Identifying Convergence in Telecommunication Infrastructures and the Dynamics of Their Influencing Factors Across Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1413-1466, June.
    17. Dong‐Hyeon Kim & Ho‐Chuan Huang & Shu‐Chin Lin & Chih‐Chuan Yeh, 2010. "Financial Development On Growth Convergence," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(4), pages 493-514, September.
    18. World Bank, 2012. "Reshaping Egypt's Economic Geography : Domestic Integration as a Development Platform," World Bank Publications - Reports 11869, The World Bank Group.
    19. Esha Zaveri & Jason Russ & Amjad Khan & Richard Damania & Edoardo Borgomeo & Anders Jägerskog, 2021. "Ebb and Flow, Volume 1," World Bank Publications - Books, The World Bank Group, number 36089.
    20. Leite, Duarte N. & Afonso, Óscar & Silva, Sandra T., 2019. "A tale of two countries: Directed technical change, trade and migratory movements," Economic Modelling, Elsevier, vol. 83(C), pages 173-194.
    21. Jessica Steinberg, 2018. "‘Strong’ states and strategic governance: A model of territorial variation in state presence," Journal of Theoretical Politics, , vol. 30(2), pages 224-245, April.

    More about this item

    Keywords

    Economic Growth; Lagging Region; Leading Region; Technology Gap;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:71596. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.