A Solow-Swan model with technological overflow and catch-up

Abstract

By introducing the logistic-like technology, the classical Solow-Swan model is extended to inquire the technological overflow and catch-up of the developing economy in this paper. The improved model is described by a two-dimensional dynamical system. It is proved that the model has a unique equilibrium which is a sink and the solution of the equation is globally asymptotically stable. And the classical Solow-Swan model is a special case of the model given here. The economic growth patterns are discussed by phase portrait analysis at the end of this paper.

Economic Growth by Means of Interspecific Functional Response of Capital-Labour in Dynamical System

“…Recently, many types of research are found that illustrated these factors in production functions [1][2][3][4][5][6][7][8][9]. Fundamentally, these models accumulate many major assumptions of capital and labour in the production function, and as a consequence in the long-term economic growth.…”