Growth and Convergence Through Technological Interdependence

JIN WEI, Yixiao Zhou

    Research output: Contribution to journalArticle


    This paper presents a multi-country version of the Ramsey growth model with cross-country technological interdependence. The results rationalize several stylized facts about growth and convergence. First, individual countries tend to converge toward country-specific balanced growth paths rather than steady-state equilibria. Second, an economy that accounts for a smaller share of the world technology distribution harnesses the “advantages of backwardness” to catch up at a faster speed. Third, countries grow at different rates during the phase of transitional dynamics. However, technological interdependence creates a force toward cross-country convergence in the growth rate and stability of world income distribution in the long run. Finally, cross-country differences in structural characteristics and initial conditions lead to divergences in the level of income per capita.
    Original languageEnglish
    Pages (from-to)1338 - 1374
    JournalMacroeconomic Dynamics
    Issue number5
    Publication statusPublished - 2022


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