Working Paper: NBER ID: w19010
Authors: Diego A. Comin; Mart Mestieri Ferrer
Abstract: We study the lags with which new technologies are adopted across countries, and their long-run penetration rates once they are adopted. Using data from the last two centuries, we document two new facts: there has been convergence in adoption lags between rich and poor countries, while there has been divergence in penetration rates. Using a model of adoption and growth, we show that these changes in the pattern of technology diffusion account for 80% of the Great Income Divergence between rich and poor countries since 1820.
Keywords: Technology Adoption; Income Divergence; Productivity Growth; Economic Growth
JEL Codes: E23; N1; O11; O12; O4
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| convergence of adoption lags across countries (F62) | narrowing of the gap in technology adoption times (O33) |
| divergence in penetration rates (F62) | widening of income disparities (D31) |
| technology adoption patterns (O33) | changes in productivity growth and income dynamics (O49) |
| convergence of adoption lags (F62) | penetration rates of technology (O33) |
| penetration rates of technology (O33) | income disparities (I24) |
| technology dynamics (O33) | income divergence (D31) |