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Does trade and technology transmission facilitate convergence? The role of technology adoption in reducing the inequality of nations

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  • Gouranga Gopal Das

Abstract

Based on stylized evidence showing variation of the Gini coefficients of income inequality across skill cohorts with the rapid rise in trade in technology‐intensive goods, the transmission effects of technology diffusion and income inequality are explored in a global Computable General Equilibrium (CGE) framework. An exogenous technology shock transmitted via trade from the United States induces productivity growth in developing regions. This spillover in technology – aided by absorptive capability, better governance and institutions, technological symmetry and social acceptance – causes income to increase and income inequality to decline. The transmission of technology facilitates convergence of inequality between nations.

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  • Gouranga Gopal Das, 2008. "Does trade and technology transmission facilitate convergence? The role of technology adoption in reducing the inequality of nations," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 11(1), pages 67-92.
    • Handle: RePEc:taf:jecprf:v:11:y:2008:i:1:p:67-92
    DOI: 10.1080/17487870802134942
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    1. Das, Gouranga, 2010. "Globalization, socio-institutional factors and North–South knowledge diffusion: Role of India and China as Southern growth progenitors," MPRA Paper 37252, University Library of Munich, Germany, revised 01 Aug 2011.

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