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Trade, technology transfer and national efficiency in developing countries

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Author Info
Henry, Michael
Kneller, Richard
Milner, Chris

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Abstract

This paper simultaneously explores the determinants of the developing countries' production frontier and these countries' [`]efficiency' in using the available resources and technology. In doing so it allows for the transfer of (industrial country) technology in determining the frontier and for international trade's influence on absorptive capacity and national efficiency levels. Stochastic frontier analysis is used to model the production frontier for 57 developing countries for the period 1970-1998, to measure cross-country and temporal differences in efficiency levels and to explain the differences in efficiency levels. The results indicate significant differences in efficiency levels across countries and regions and movement over time, and an important influence of trade and trade policy in raising output both through technology improvements embodied in imported capital goods and by inducing efficiency improvements.

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File URL: http://www.sciencedirect.com/science/article/B6V64-4SMF02F-1/2/dc2ce20e08e9f7cfbaa0513fbcf2c36c
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Publisher Info
Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 53 (2009)
Issue (Month): 2 (February)
Pages: 237-254
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Handle: RePEc:eee:eecrev:v:53:y:2009:i:2:p:237-254

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Keywords: Trade Technology transfer Aggregate efficiency;

Cited by:
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  1. Haaparanta, Pertti & Virta, Heli, 2006. "Decomposing Growth: Do Low-Income and HIPCs Differ from High-Income Countries? Growth, Technological Catch-up, Technological Change and Human and Physical Capital Deepening," Working Papers RP2006/26, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
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This page was last updated on 2009-11-7.

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