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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. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    2. 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. Humphreys, David, 2010. "The great metals boom: A retrospective," Resources Policy, Elsevier, vol. 35(1), pages 1-13, March.
    3. 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.
    4. Wolfgang Keller & Stephen Ross Yeaple, 2013. "The Gravity of Knowledge," American Economic Review, American Economic Association, vol. 103(4), pages 1414-1444, June.
    5. 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.
    6. 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.
    7. 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).
    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. Sylvain Dejean, 2019. "The role of distance and social networks in the geography of crowdfunding: evidence from France," Working Papers hal-01645147, HAL.
    10. Oldenski, Lindsay, 2012. "Export Versus FDI and the Communication of Complex Information," Journal of International Economics, Elsevier, vol. 87(2), pages 312-322.
    11. Frances Ruane & Ali Ugur, 2005. "Export Platform FDI and Dualistic Development," The Institute for International Integration Studies Discussion Paper Series iiisdp028, IIIS.
    12. 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.
    13. 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.
    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. 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.

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