Endogenous International Technology Spillovers and Biased Technical Change in the GTAP Model
AbstractFebruary 1999 This paper discusses the implementation of embodied international technology spillovers in the GTAP Model. We specify a transmission mechanism for technical knowledge that assumes that knowledge is embodied in traded commodities. The usability of knowledge in the receiving country is dependent on the local absorption capacity (e.g., human capital, knowledge infrastructure) and on structural differences (e.g., factor endowments, climate) between countries. This concept is illustrated first by modeling spillovers embodied in final products and Hicks-neutral technical change. The bulk of the paper deals with factor-biased technical change in agriculture, and its international transmission through traded intermediate inputs. We demonstrate how to implement embodied international technology spillovers in the GTAP Model and provide some numerical illustrations which highlight production effects and welfare effects. The GEMPACK implementation, together with additional data, is provided in a set of files which accompanies this paper.
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Bibliographic InfoPaper provided by Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University in its series GTAP Technical Papers with number 318.
Date of creation: 1999
Date of revision:
Note: GTAP Technical Paper No. 15
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- Truong Phuoc Truong, 2010. "A comparative study of selected Asian countries on carbon emission with respect to different trade and climate changes mitigation policy scenarios," Working Papers 8610, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
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- Enrica De Cian & Ramiro Parrado, 2012. "Technology Spillovers Embodied in International Trade: Intertemporal, regional and sectoral effects in a global CGE," Working Papers 2012.27, Fondazione Eni Enrico Mattei.
- Hübler, Michael, 2011. "Technology diffusion under contraction and convergence: A CGE analysis of China," Energy Economics, Elsevier, vol. 33(1), pages 131-142, January.
- Wei Jin, 2012. "Can China Harness Globalization to Reap Carbon Savings? Modeling International Technology Diffusion in a Multi-region Framework," CAMA Working Papers 2012-52, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
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