Industrial development, technological change, and long-run growth

Published

Journal Article

To account for the qualitative differences between developed and developing countries, this paper argues that the expensive in-house R and D that manufacturing firms undertake in advanced industrial economies cannot be supported in countries that are in the early stage of industrialization and do not have sufficiently large markets for manufacturing goods. Such economies grow as standard development models predict: by accumulating physical and human capital and increasing specialization by industry. Only at sufficiently high levels of development there are incentives for systematic R and D efforts. As a result, economies go through an industrial life cycle as they move from initial backwardness to industrial maturity. In other words, development and growth are stages of a process of structural transformation characterized by changing patterns of capital accumulation, specialization by industry, and technological change.

Full Text

Duke Authors

Cited Authors

  • Peretto, PF

Published Date

  • August 1, 1999

Published In

Volume / Issue

  • 59 / 2

Start / End Page

  • 389 - 417

International Standard Serial Number (ISSN)

  • 0304-3878

Digital Object Identifier (DOI)

  • 10.1016/S0304-3878(99)00018-8

Citation Source

  • Scopus