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Absorption Capacity, Structural Similarity and Embodied Technology Spillovers in A ‘Macro’ Model: An Implementation within a CGE Framework

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  • Das, Gouranga
  • Powell, Alan A. L.

Abstract

In 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 Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 37258.

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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
Handle: RePEc:pra:mprapa:37258

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Related research

Keywords: Absorption Capacity; Capture Parameter; Trade; Technology Spillover; and CGE;

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  1. Robert J. Barro, 1995. "Inflation and Economic Growth," NBER Working Papers 5326, National Bureau of Economic Research, Inc.
  2. W. Jill Harrison & K.R. Pearson, 1994. "Computing Solutions for Large General Equilibrium Models Using GEMPACK," Centre of Policy Studies/IMPACT Centre Working Papers ip-64, Victoria University, Centre of Policy Studies/IMPACT Centre.
  3. Keller, Wolfgang, 1996. "Absorptive capacity: On the creation and acquisition of technology in development," Journal of Development Economics, Elsevier, vol. 49(1), pages 199-227, April.
  4. Hans van Meijl & Frank van Tongeren, 1999. "Endogenous International Technology Spillovers and Biased Technical Change in Agriculture," Economic Systems Research, Taylor & Francis Journals, vol. 11(1), pages 31-48.
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