About the long-term distributional impact of embodied technological progress (without spillover effects) in developing countries
Abstract
This paper addresses the distributional long-term effects on a developing economy of the sophistication of its productive capacity—and narrowing of the technology gap with the advanced countries—based on embodied technological progress. Our proposed economy consists of three sectors: one producing final goods; one producing intermediate goods and one that adopts existing technologies with a certain degree of inefficiency. We assume perfect mobility of labor and capital. From this, we characterize the optimal decisions for distributing resources in the long term. Contradicting the literature on the complementarity of capital and skills in the presence of technological change, our model predicts scenarios where, given certain structural conditions in the economy, income inequality can be reduced.
Downloads
Downloads
Published
How to Cite
Issue
Section
License
Copyright / Open Access Policy: This journal provides immediate free open access to its content on the principle that making research freely available to the public supports a greater global exchange of ideas and is distributed under the terms and conditions of the Creative Commons Attribution License (CC BY).
The copyright will be retained by the authors. Articles are free for personal use but are protected by copyright in the sense that they may not be used for purposes other than personal use without the permission of the author.