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What Role for 'Learning'? A North-South Tale of Enrichment Effect∗

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  • Das, Gouranga G.

    (Department of Economics, Hanyang University, Erica Campus, South Korea.)

Abstract

Drawing on the asymmetric growth experiences of the advanced, emerging, and the underdeveloped economies, this paper explores the scope of learning effects via North-South trade by offering quantitative measures of coefficient of differences in trade. Constructing technology appropriation parameters and indigenous and foreignsourced R&D via trade-mediated spillover to the recipients, it shows that North-South trade flows could lead to product sophistication of exports via enhancement of technology frontier. This is enrichment effect. Aided by the right adoption of parameters such as absorptive capacity, innovation capability and technological upgrading, knowledge flow transmits enrichment benefits in a multi-speed world, facilitates productivity improvements, alters level of product sophistication, and enables narrowing the North-South technology gap.

Suggested Citation

  • Das, Gouranga G., 2014. "What Role for 'Learning'? A North-South Tale of Enrichment Effect∗," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 67-85, March.
    • Handle: RePEc:rjr:romjef:v::y:2014:i:1:p:67-85
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    References listed on IDEAS

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    1. Stephen Kosempel, 2007. "Interaction between knowledge and technology: a contribution to the theory of development," Canadian Journal of Economics, Canadian Economics Association, vol. 40(4), pages 1237-1260, November.
    2. Robert E. Lucas, 2009. "Ideas and Growth," Economica, London School of Economics and Political Science, vol. 76(301), pages 1-19, February.
    3. Zhi Wang & Shang-Jin Wei, 2010. "What Accounts for the Rising Sophistication of China's Exports?," NBER Chapters, in: China's Growing Role in World Trade, pages 63-104, National Bureau of Economic Research, Inc.
    4. Maurice Schiff & Yanling Wang, 2006. "North-South and South-South trade-related technology diffusion: an industry-level analysis of direct and indirect effects," Canadian Journal of Economics, Canadian Economics Association, vol. 39(3), pages 831-844, August.
    5. Robert E. Lucas, 2009. "Trade and the Diffusion of the Industrial Revolution," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 1-25, January.
    6. Alan D. Woodland (ed.), 2002. "Economic Theory and International Trade," Books, Edward Elgar Publishing, number 1994.
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    Cited by:

    1. Gouranga G. Das & Zeynep Akgul & Badri G. Narayanan, 2023. "How Do Productivity Benefits Spill Over Across Firms? Explorations in a Heterogeneous Firm Applied General Equilibrium Trade Model," Politická ekonomie, Prague University of Economics and Business, vol. 2023(2), pages 104-129.
    2. Da HUO & Ken HUNG, 2015. "Internationalization Strategy and Firm Performance: Estimation of Corporate Strategy Effect Based on Big Data of Chinese IT Companies in a Complex Network," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 148-163, June.

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    More about this item

    Keywords

    technology diffusion; trade; enrichment; learning; specialization;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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