Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/163159
Authors: 
Liu, Peilin
Shen, Jia
Zhang, Xun
Year of Publication: 
2017
Series/Report no.: 
ADBI Working Paper Series 660
Abstract: 
Certain stylized facts are common among successful economic latecomers: an inverse U-shaped gross domestic product and capital per capita growth rate, high growth rates during the catch-up period, and rapid structural changes. This paper, for the first time, proposes a general equilibrium framework to document the catch-up cycle that a successful latecomer is likely to experience. We argue that technology adoption and imitation, and the diminishing marginal returns to capital are the two driving forces of the catch-up cycle. The technological gap and speed/efficiency of technological catching-up are two fundamental factors for successful catching-up. This paper concludes with a case study for the People's Republic of China and sheds light on the different policy choices in various stages of the catch-up cycle.
Subjects: 
Economics
China, People's Republic of
JEL: 
E13
E60
O11
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/3.0/igo/
Document Type: 
Working Paper

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