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Market structure, factor endowment, and technology adoption

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  • Wang, Yong

Abstract

This paper investigates how technology adoption depends on factor endowment when new, capital-intensive technology is privately accessible. The non-competitive market structure is shown to indirectly distort factor prices in general equilibrium, resulting in a nonmonotonic capital endowment impact on static allocation efficiency and the dynamic pattern of industrial upgrading. Moreover, an increase in the initial capital endowment may delay rather than facilitate the adoption of capital-intensive technology. Private accessibility to the new technology may also result in premature adoption, overutilization, and multiple equilibria. Welfare-enhancing policies are discussed.

Suggested Citation

  • Wang, Yong, 2022. "Market structure, factor endowment, and technology adoption," Research in International Business and Finance, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:riibaf:v:63:y:2022:i:c:s0275531922001738
    DOI: 10.1016/j.ribaf.2022.101787
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    More about this item

    Keywords

    Capital accumulation; Economic growth; Industrial upgrading; Market structure; Technology adoption;
    All these keywords.

    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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