Growth Patterns under Imitation in the Investment Decision
Experience shows that developing countries or regions that vary little with respect to their fundamentals sometimes follow different growth paths. Such puzzling facts may occur if less informed international investors imitate those who are well informed about profit opportunities instead of acquiring the relevant information themselves. This paper analyses how the type of mimetic behavior influences the development pattern of an economy where the lack of infrastructure is the main constraint on development. Possible outcomes may be stationary growth, divergent growth or cycles in development.
BESANCENOT, D., HUYNH, K.V. et VRANCEANU, R. (2001). Growth Patterns under Imitation in the Investment Decision. Economic Systems, pp. 51-64.