Intermediate goods, weak links, and superstars

a theory of economic development

Intermediate goods, weak links, and superstar ...
Charles I. Jones, Charles I. J ...
Locate

My Reading Lists:

Create a new list

Check-In

×Close
Add an optional check-in date. Check-in dates are used to track yearly reading goals.
Today


Buy this book

Last edited by MARC Bot
December 22, 2020 | History

Intermediate goods, weak links, and superstars

a theory of economic development

"Per capita income in the richest countries of the world exceeds that in the poorest countries by more than a factor of 50. What explains these enormous differences? This paper returns to several old ideas in development economics and proposes that linkages, complementarity, and superstar effects are at the heart of the explanation. First, linkages between firms through intermediate goods deliver a multiplier similar to the one associated with capital accumulation in a neoclassical growth model. Because the intermediate goods' share of revenue is about 1/2, this multiplier is substantial. Second, just as a chain is only as strong as its weakest link, problems at any point in a production chain can reduce output substantially if inputs enter production in a complementary fashion. Finally, the high elasticity of substitution associated with final consumption delivers a superstar effect: GDP depends disproportionately on the highest levels of productivity in the economy. This paper builds a model with links across sectors, complementary inputs, and highly substitutable consumption, and shows that it can easily generate 50-fold aggregate income differences"--National Bureau of Economic Research web site.

Publish Date
Language
English

Buy this book

Edition Availability
Cover of: Intermediate goods, weak links, and superstars
Intermediate goods, weak links, and superstars: a theory of economic development
2008, National Bureau of Economic Research
Electronic resource in English

Add another edition?

Book Details


Edition Notes

Title from PDF file as viewed on 6/13/2008.

Includes bibliographical references.

Also available in print.

System requirements: Adobe Acrobat Reader.

Mode of access: World Wide Web.

Published in
Cambridge, MA
Series
NBER working paper series -- working paper 13834, Working paper series (National Bureau of Economic Research : Online) -- working paper no. 13834.

Classifications

Library of Congress
HB1

The Physical Object

Format
Electronic resource

ID Numbers

Open Library
OL17087141M
LCCN
2008610532

Community Reviews (0)

Feedback?
No community reviews have been submitted for this work.

Lists

This work does not appear on any lists.

History

Download catalog record: RDF / JSON / OPDS | Wikipedia citation
December 22, 2020 Edited by MARC Bot import existing book
July 29, 2012 Edited by VacuumBot Updated format '[electronic resource] :' to 'Electronic resource'
December 15, 2009 Edited by WorkBot link works
October 28, 2008 Edited by ImportBot Found a matching Library of Congress MARC record
September 27, 2008 Created by ImportBot Imported from Library of Congress MARC record