The capacity of developing economies to narrow the gap in living standards with the OECD nations depends critically on their ability to imitate and innovate new technologies. Toward this end, developing economies have access to three avenues of technological advance: technology transfer,...

This paper formulates a novel growth accounting framework that attempts to achieve several objectives. The first is to build a bridge between growth accounting and growth theory by resolving their asymmetric interpretations of technical change and the fundamental “sources” of growth. This...