An Empirical Work On Catch Up By The Diffusion Of Technology

The main idea of catch up hypothesis is how rapidly follower economies tend to catch the leader since imitation and implementation of discoveries are cheaper than innovation. Therefore imitation and implementation of discoveries tends to generate convergence even though diminishing returns to capital or to R&D do not apply. If the diffusion of technology occurs gradually, then we get another reason to predict a pattern of convergence across economies, which we estimate in this study. The estimation indicates that follower economies tend to catch up the leader. Hence, we could say imitation and implementation of discoveries generate convergence in an empirically