Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/174582
Authors: 
Dosi, Giovanni
Roventini, Andrea
Russo, Emanuele
Year of Publication: 
2017
Series/Report no.: 
LEM Working Paper Series 2017/32
Abstract: 
In this paper we present a multi-country, multi-industry agent-based model investigating the different growth patterns of interdependent economies. Each country features a Schumpeterian engine of endogenous technical change which interacts with Keyneasian/Kaldorian demand generation mechanisms. National growth trajectories are driven by firms' accumulation of technological knowledge, which in turn also leads to emergent specialization patterns in different industries. Interactions among economies occur via trade flows, stemming from the competition of firms in international markets. Simulation results show the emergence of persistent income divergence among countries leading to polarization and club formation. Moreover, each country experiences a structural transformation of its productive structure during the development process. Such dynamics results from firm-level virtuous (or vicious) cycles between knowledge accumulation, trade performances, and growth dynamics. The model accounts for a rich ensemble of empirical regularities at macro, meso and micro levels of aggregation.
Subjects: 
Endogenous growth
structural change
technology-gaps
global divergence
absolute
advantages
agent-based models
JEL: 
F41
F43
O4
O3
Document Type: 
Working Paper

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