Absorption Capacity, Structural Similarity and Embodied Technology Spillovers in A ‘Macro’ Model: An Implementation within a CGE Framework
AbstractIn this paper, all technology transfers are embodied in trade flows within a three-region, one-traded-commodity version of the GTAP model. Exogenous Hicks-Neutral technical progress in one region can have uneven impacts on productivity elsewhere. Why? Destination regions’ ability to harness new technology depends on their absorptive capacity and the structural congruence of the source and destination. Together with trade volume, these two factors determine the recipient’s spillover coefficient (which measures its success in capturing foreign technology). Armington competition between the outputs of the three economies and shifts in their terms of trade loom large in the general equilibrium adjustment.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 37258.
Date of creation: 01 Jan 2000
Date of revision: 01 Jul 2001
Publication status: Published in The Korean Journal of Policy Studies, Seoul National University. 1.16(2002): pp. 111-132
Absorption Capacity; Capture Parameter; Trade; Technology Spillover; and CGE;
Find related papers by JEL classification:
- F1 - International Economics - - Trade
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
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