Advanced Search
MyIDEAS: Login to save this paper or follow this series

Trade-mediated biotechnology transfer and its effective absorption: an application to the U.S. forestry sector


Author Info

  • Das, Gouranga Gopal
  • Alavalapati, Janaki


n this paper, we analyze the consequences of biotechnology innovations in the United States forest sector (logging) by modeling technology transfer embodied in trade flows and its absorption. A seven-region, seven-traded-commodity version of a dynamic computable general equilibrium model is used to achieve this task. A 0.63% Hicks-neutral biotechnological progress in the source region (U.S.) has differential impacts on the productivity of the log-using sectors in the domestic as well as in the recipient regions. Since recipient regions' ability to utilize biotechnology innovations depends on their absorptive capacity (AC) and structural similarity (SS), we construct the AC and SS indices based on multiplicity of factors such as human capital endowments, skill content and social appropriateness of the new innovations. The model results show that biotechnological innovations in the U.S. forest sector result in a significant increase in timber production. Following the productivity improvements and its embodied spillover, wood products and pulp and paper sectors in the U.S. register higher productivity growth. The role of AC and SS in capturing technical change is shown to be evident. In the face of growing regulations on timber production from public forests, increasing productivity through biotechnology may be the most effective way to meet the consumer demand for forest products.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
File Function: original version
Download Restriction: no

Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 37254.

as in new window
Date of creation: 15 Jun 2001
Date of revision: 01 Feb 2002
Publication status: Published in Technological forecasting and Social Change 6.70(2003): pp. 545-562
Handle: RePEc:pra:mprapa:37254

Contact details of provider:
Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page:
More information through EDIRC

Related research

Keywords: Total factor productivity; Dynamic computable general equilibrium; Capture parameter; Forestry biotechnology;

Find related papers by JEL classification:


References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Ianchovichina, Elena & Robert McDougall & Thomas W. Hertel, 2000. "A Disequilibrium Model of International Capital Mobility," GTAP Working Papers, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University 399, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  2. Keller, Wolfgang, 2000. "Do Trade Patterns and Technology Flows Affect Productivity Growth?," World Bank Economic Review, World Bank Group, World Bank Group, vol. 14(1), pages 17-47, January.
  3. Dietzenbacher, Erik, 2000. "Spillovers of Innovation Effects," Journal of Policy Modeling, Elsevier, Elsevier, vol. 22(1), pages 27-42, January.
  4. Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander, 1995. "North-South R&D Spillovers," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1133, C.E.P.R. Discussion Papers.
  5. Pack, Howard & Westphal, Larry E., 1986. "Industrial strategy and technological change : Theory versus reality," Journal of Development Economics, Elsevier, Elsevier, vol. 22(1), pages 87-128, June.
  6. Sedjo, Roger, 1997. "The Forest Sector: Important Innovations," Discussion Papers, Resources For the Future dp-97-42, Resources For the Future.
  7. Harrison, W Jill & Pearson, K R, 1996. "Computing Solutions for Large General Equilibrium Models Using GEMPACK," Computational Economics, Society for Computational Economics, Society for Computational Economics, vol. 9(2), pages 83-127, May.
  8. Fagerberg, Jan, 1994. "Technology and International Differences in Growth Rates," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 32(3), pages 1147-75, September.
  9. Ianchovichina, Elena & Robert McDougall, 2000. "Theoretical Structure of Dynamic GTAP," GTAP Technical Papers, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University 480, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  10. Michelle P. Connolly, 1997. "Technology, trade and growth: some empirical findings," Research Paper, Federal Reserve Bank of New York 9727, Federal Reserve Bank of New York.
  11. Sedjo, Roger, 1999. "Biotechnology and Planted Forests: Assessment of Potential and Possibilities," Discussion Papers, Resources For the Future dp-00-06, Resources For the Future.
  12. Nelson, Richard R. & Pack, Howard, 1998. "The Asian miracle and modern growth theory," Policy Research Working Paper Series, The World Bank 1881, The World Bank.
  13. Hans Meijl & Frank Tongeren, 1998. "Trade, technology spillovers, and food production in China," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 134(3), pages 423-449, September.
Full references (including those not matched with items on IDEAS)



This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:37254. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.