Trade-Induced Technology Spillover And Adoption: A Quantitative General Equilibrium Application
AbstractThis paper investigates the impact of a 4% Hicks-neutral technical progress in heavy manufacturing in the United States and its trans-border spillover via intermediates. A three-region, six-traded-commodity computable general equilibrium model is numerically simulated to show that differentials in regional productivity improvements depend on their absorptive capacity and structural similarity. This determines the extent of technology capture. The model results show that the productivity improvement and transmission result in productivity growth in sectors intensively using heavy manufacturing. Returns to skilled labour depend on technology spillover and capture parameter. The results have implications for the role of human capital in assimilating advanced technology.
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Bibliographic InfoArticle provided by Chung-Ang Unviersity, Department of Economics in its journal Journal Of Economic Development.
Volume (Year): 27 (2002)
Issue (Month): 2 (December)
Absorptive Capacity; Structural Similarity; Capture Parameter; Trade; Technology;
Find related papers by JEL classification:
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
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