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© 1994 Oxford University Press

research-article

The Dynamics of International Differentiation: A Multi-country Evolutionary Model*

GIOVANNI DOSIa, SILVIA FABIANIb, ROBERTA AVERSIc and MARA MEACCId

aDepartment of Economics, University of Rome, ‘La Sapienza’ Rome, Italy
bUniversity of Cambridge UK
c Tecsiel, Rome, Italy
dFaculty of Statistics, University of Rome, ‘La Sapienza’ Rome, Italy

Abstract

The paper presents some (admittedly preliminary) results on evolutionary modeling of open-economies interactions. The dynamics is microfounded in a multiplicity of boundedly rational agents who imperfectly learn how to innovate in environments characterized by notionally unlimited opportunities. Micro discoveries—it is shown—can generate persistent system-level effects. Despite the absence in the model of any institutional specificity of individual countries, processes of innovative exploration and imitation yield international divergence, (less often) convergence, catching-up, and falling-behind.


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