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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.

Suggested Citation

  • Danny Quah, 1999. "The Weightless Economy in Economic Development," WIDER Working Paper Series wp-1999-155, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-1999-155
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    File URL: https://www.wider.unu.edu/sites/default/files/wp155.pdf
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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.
    2. Quah, Danny, 1997. "Empirics for growth and distribution," LSE Research Online Documents on Economics 2138, London School of Economics and Political Science, LSE Library.
    3. Gene M. Grossman & Elhanan Helpman, 1991. "Quality Ladders in the Theory of Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(1), pages 43-61.
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    7. Danny Quah, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEP Discussion Papers dp0280, Centre for Economic Performance, LSE.
    8. Keely, Louise & Quah, Danny, 1998. "Technology in Growth," CEPR Discussion Papers 1901, C.E.P.R. Discussion Papers.
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    10. Rosen, Sherwin, 1981. "The Economics of Superstars," American Economic Review, American Economic Association, vol. 71(5), pages 845-858, December.
    11. Danny Quah, 1996. "The Invisible Hand and the Weightless Economy," CEP Occasional Papers 12, Centre for Economic Performance, LSE.
    12. Quah, Danny, 1997. "Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," CEPR Discussion Papers 1586, C.E.P.R. Discussion Papers.
    13. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    14. Quah, Danny, 1996. "Twin peaks : growth and convergence in models of distribution dynamics," LSE Research Online Documents on Economics 2278, London School of Economics and Political Science, LSE Library.
    15. Jones, Charles I, 1995. "R&D-Based Models of Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 759-784, August.
    16. Quah, Danny, 1996. "The invisible hand and the weightless economy," LSE Research Online Documents on Economics 2271, London School of Economics and Political Science, LSE Library.
    17. Dasgupta, Partha, 1988. "Patents, Priority and Imitation or, the Economics of Races and Waiting Games," Economic Journal, Royal Economic Society, vol. 98(389), pages 66-80, March.
    18. Danny Quah, 1997. "Empirics for Growth and Distribution," CEP Discussion Papers dp0324, Centre for Economic Performance, LSE.
    19. Wright, Brian Davern, 1983. "The Economics of Invention Incentives: Patents, Prizes, and Research Contracts," American Economic Review, American Economic Association, vol. 73(4), pages 691-707, September.
    20. Quah, Danny T, 1997. "Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," Journal of Economic Growth, Springer, vol. 2(1), pages 27-59, March.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

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    2. Oldenski, Lindsay, 2012. "Export Versus FDI and the Communication of Complex Information," Journal of International Economics, Elsevier, vol. 87(2), pages 312-322.
    3. Andrés Rodríguez-Pose & Riccardo Crescenzi, 2008. "Mountains in a flat world: why proximity still matters for the location of economic activity," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 1(3), pages 371-388.
    4. 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.
    5. Jan Fazlagić & Elżbieta Izabela Szczepankiewicz, 2020. "The Role of Local Governments in Supporting Creative Industries—A Conceptual Model," Sustainability, MDPI, vol. 12(1), pages 1-23, January.
    6. Humphreys, David, 2010. "The great metals boom: A retrospective," Resources Policy, Elsevier, vol. 35(1), pages 1-13, March.
    7. 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.
    8. 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.
    9. 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.
    10. 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).
    11. 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.
    12. Wolfgang Keller & Stephen Ross Yeaple, 2013. "The Gravity of Knowledge," American Economic Review, American Economic Association, vol. 103(4), pages 1414-1444, June.
    13. 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.
    14. 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).
    15. Carlo MENON, 2014. "La propagation des grandes idées? L\'impact de l\'activité de brevet des firmes leader sur les inventeurs locaux," Cahiers du GREThA (2007-2019) 2014-11, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    16. Frances Ruane & Ali Ugur, 2005. "Export Platform FDI and Dualistic Development," The Institute for International Integration Studies Discussion Paper Series iiisdp028, IIIS.

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