Differential investment in an AI-based technology and economic growth: a tale of two regions
In this paper, we analyze a dynamic model in which two stylized regions, A and B, use an artificial intelligence (AI)-based technology α(t) to produce a knowledge good Qt. Even though the initial value of the AI-based technology α(0) is identical in both regions, region A saves and hence invest...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Alexandru Ioan Cuza University of Iasi
2025-06-01
|
| Series: | Eastern Journal of European Studies |
| Subjects: | |
| Online Access: | https://ejes.uaic.ro/articles/EJES2025_1601_01_BAT.pdf |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850118700033638400 |
|---|---|
| author | Amitrajeet A. Batabyal Hamid Beladi |
| author_facet | Amitrajeet A. Batabyal Hamid Beladi |
| author_sort | Amitrajeet A. Batabyal |
| collection | DOAJ |
| description | In this paper, we analyze a dynamic model in which two stylized regions, A and B, use an artificial intelligence (AI)-based technology α(t) to produce a knowledge good Qt. Even though the initial value of the AI-based technology α(0) is identical in both regions, region A saves and hence invests more than region B to make the existing AI-based technology more powerful. We show that this differential investment means that the ratio of the output of the knowledge good in region A to region B or QAQB is continually rising. In other words, without targeted policy, region A will become a "leading region" that experiences economic growth and innovation ahead of region B which will become a "lagging region" that innovates less and hence tends to grow more slowly. |
| format | Article |
| id | doaj-art-d6c0b0718173416aab44ac2da34b8f2a |
| institution | OA Journals |
| issn | 2068-651X 2068-6633 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Alexandru Ioan Cuza University of Iasi |
| record_format | Article |
| series | Eastern Journal of European Studies |
| spelling | doaj-art-d6c0b0718173416aab44ac2da34b8f2a2025-08-20T02:35:49ZengAlexandru Ioan Cuza University of IasiEastern Journal of European Studies2068-651X2068-66332025-06-0116151210.47743/ejes-2025-0101Differential investment in an AI-based technology and economic growth: a tale of two regions Amitrajeet A. Batabyalhttps://orcid.org/0000-0001-7813-1519Hamid BeladiIn this paper, we analyze a dynamic model in which two stylized regions, A and B, use an artificial intelligence (AI)-based technology α(t) to produce a knowledge good Qt. Even though the initial value of the AI-based technology α(0) is identical in both regions, region A saves and hence invests more than region B to make the existing AI-based technology more powerful. We show that this differential investment means that the ratio of the output of the knowledge good in region A to region B or QAQB is continually rising. In other words, without targeted policy, region A will become a "leading region" that experiences economic growth and innovation ahead of region B which will become a "lagging region" that innovates less and hence tends to grow more slowly.https://ejes.uaic.ro/articles/EJES2025_1601_01_BAT.pdfartificial intelligencedynamicseconomic growthregiontechnology |
| spellingShingle | Amitrajeet A. Batabyal Hamid Beladi Differential investment in an AI-based technology and economic growth: a tale of two regions Eastern Journal of European Studies artificial intelligence dynamics economic growth region technology |
| title | Differential investment in an AI-based technology and economic growth: a tale of two regions |
| title_full | Differential investment in an AI-based technology and economic growth: a tale of two regions |
| title_fullStr | Differential investment in an AI-based technology and economic growth: a tale of two regions |
| title_full_unstemmed | Differential investment in an AI-based technology and economic growth: a tale of two regions |
| title_short | Differential investment in an AI-based technology and economic growth: a tale of two regions |
| title_sort | differential investment in an ai based technology and economic growth a tale of two regions |
| topic | artificial intelligence dynamics economic growth region technology |
| url | https://ejes.uaic.ro/articles/EJES2025_1601_01_BAT.pdf |
| work_keys_str_mv | AT amitrajeetabatabyal differentialinvestmentinanaibasedtechnologyandeconomicgrowthataleoftworegions AT hamidbeladi differentialinvestmentinanaibasedtechnologyandeconomicgrowthataleoftworegions |