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2014 | OriginalPaper | Buchkapitel

4. Determinants of Economic Divergence Among Accelerating Societies

verfasst von : Tai-Yoo Kim, Seunghyun Kim, Ph.D. in Engineering, Jongsu Lee

Erschienen in: Economic Growth

Verlag: Springer Berlin Heidelberg

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Abstract

Theoretical discussions about the existence of divergence among countries have advanced and are centered on convergence, the technology gap, government-leading catch-up strategies, information communication technology diffusion, and inter-country development gap expansion. By applying economic models to different societies, the income divergence hypothesis for nations can be proven. This income diversion model clearly explains not only the emergence of accelerating and decelerating societies but also the income divergence seen among accelerating societies. Therefore, in this paper, theoretical evidence about divergence is suggested based on the existing discussions related to the issue, and then the inter-country income divergence model is used to explain the differences between accelerating and decelerating societies.

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Fußnoten
1
In a decelerating society, the speed of output increase is decelerated as input increases.
 
2
In an accelerating society, the speed of output increases and the speed of economic growth accelerate due to technological development.
 
3
In the faster accelerating society, the speed of output increase is faster than that of an accelerating society.
 
4
For the historical and empirical examples of the polarized society are described in Appendix 1 and 2.
 
5
In the Amable (1993) model, determinants of productivity growth are endogenous: investment equipment share in GDP, innovative activity, and the level of schooling.
 
6
Philip Emeagwali (born in 1954) is a Nigerian-born computer scientist/geologist who was one of two winners of the 1989 Gordon Bell Prize, given from the IEEE (Institute of Electrical and Electronics Engineers), for the use of the Connection Machine Supercomputer, featuring over 65,000 parallel processors, to help analyze petroleum fields.
 
7
Knowledge-based society, which is also called “the information society,” “the new economy,” and “the digital society,” was first introduced by Machlup (1962). In this society, the creation, distribution, diffusion, use, and manipulation of information is important to economic growth.
 
8
The model is used to simulate the effects of increased exports of labor-intensive manufactured goods by the South on the terms of trade and incomes. It is assumed that North and South are completely specialized in the skill- and labor- intensive manufacturing sectors respectively, so that Southern exporters do not compete with the Northern producers, and wages are fully flexible in the North and full employment always prevails. The simulations are carried out by increasing the size (population and employment) of the South by 20 % compared to the baseline while keeping the size of the North unchanged. This is equivalent to increasing the supply of labor-intensive exports faster than demand. For more details, see the Trade and Development Report (1995) Annex 1 to part Three.
 
9
This figure is based on a 20 % increase in population and employment.
 
10
The United States adopted Section 301 in 1974. With this procedure, U.S. companies can claim foreign that some trade barriers create a unfair trade disadvantage for them.
 
11
Each nation’s GDP graph provided henceforth are simple average of the international Geary-Khamis dollars. Data has been extracted from Angus Maddison (2006).
 
12
Refer to “the Burgenoning period: industrialization and globalization of the market” from this chapter.
 
13
Bowen (1950).
 
14
The term is used to indicate the circumstances in which the world order is retained by US.
 
15
Kindleberger (1964).
 
16
Organski and Jacek (1977).
 
17
Hamada and Munehisa (1993).
 
18
Tsuru (1993).
 
19
Kindleberger (1996).
 
20
Tessa Morris-Suzuki (1994).
 
21
Refers to the nations that have not yet attained worldly economic capacity but shows rapid economic growth compared to the developing nations.
 
22
Young (1992).
 
23
Baer (1972).
 
24
Baer (1972
 
25
Alejandro (1982).
 
26
Taylor (1998).
 
27
Bulmer-Thomas (2003).
 
28
Alam (1989).
 
29
Dent (2002).
 
30
Gereffi (1989).
 
31
Cardoso and Helwege (1992).
 
32
Edwards (1995).
 
33
Dent (2002).
 
34
To avoid confusion, the GDP graph of the advanced nations is provided for mere comparison with the FNs, irrelevant of the period classifications.
 
35
First mentioned in Newsweek, US, in 1995. Refers to the 1990s when US saw increase in productivity comparable to that of the past 60 years without depression.
 
36
Argentina and Spain became independent from Spain in 1816 and 1818, respectively. Brazil gained its independence from Portugal in 1822.
 
37
For example, the Argentine ratio of export to US rapidly decreased to 8.3 % in 1929 from 29.3 % in 1918, and that of Chile decreased from 56.8 % in 1918 to 33.1 %.
 
38
Furtado (1976).
 
39
McGuire (1994).
 
40
Kim (2000).
 
41
Furtado (1976).
 
42
Krugman (1979).
 
43
Radelt and Sachs (1998).
 
44
Corsetti et al. (1999).
 
45
Kim (2004).
 
46
Kim (2007).
 
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Metadaten
Titel
Determinants of Economic Divergence Among Accelerating Societies
verfasst von
Tai-Yoo Kim
Seunghyun Kim, Ph.D. in Engineering
Jongsu Lee
Copyright-Jahr
2014
Verlag
Springer Berlin Heidelberg
DOI
https://doi.org/10.1007/978-3-642-40826-7_4