Le Van, Cuong
Saglam, Cagri
Presenting a discrete time version of the Romer (1986) model, this paper analyzes optimal paths in a one-sector growth model when the technology is not convex. We prove that for a given quality of knowledge technology, the countries could take-off if their initial stock of capital are above a critical level; otherwise they could face a poverty-trap. We show that for an economy which wants to take-off by means of knowledge technology requires three factors large amount of initial knowledge, small fixed costs and a good quality of knowledge technology.
Bibliographic reference |
Le Van, Cuong ; Saglam, Cagri. Quality of Knowledge Technology, Returns to Production Technology and Economic Development. ECON Working Papers ; 2002/04 (2002) |
Permanent URL |
http://hdl.handle.net/2078.1/5602 |