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How to Reap the Induced Technological Bonus? A Mechanism and Illustrative Implementation

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  • Das, Gouranga

Abstract

Exogenous technical progress can have uneven impacts on productivity contingent on absorptive capacity, structural congruence and trade intensity. The paper illustrates the role of enabling behind-the-border factors for effective absorption and is pertinent for discussing issues like ‘Europe 2020’or Lisbon strategy for inclusive growth. Drawing on our model, we illustrate that the capture-parameter is the propellant force for effective assimilation of foreign technology of recent vintage. The capture parameter is the outcome of endogenous decision-making process. The ‘productivity bonus’ mechanism leaves room for changing the results via skill-mix composition. However, it awaits implementation in a large-scale economy-wide modeling framework for further extension.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 37921.

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Date of creation: 2009
Date of revision: 2010
Publication status: Published in Modern Economy 1.1(2010): pp. 80-88
Handle: RePEc:pra:mprapa:37921

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Related research

Keywords: Trade; Technology Spillover; Capture; Productivity; Congruence;

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References

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  1. Keller, Wolfgang, 2000. "Do Trade Patterns and Technology Flows Affect Productivity Growth?," World Bank Economic Review, World Bank Group, vol. 14(1), pages 17-47, January.
  2. Hans Meijl & Frank Tongeren, 1998. "Trade, technology spillovers, and food production in China," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 134(3), pages 423-449, September.
  3. Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander W, 1997. "North-South R&D Spillovers," Economic Journal, Royal Economic Society, vol. 107(440), pages 134-49, January.
  4. Guerrieri, Paolo & Milana, Carlo, 1995. "Changes and Trends in the World Trade in High-Technology Products," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 225-42, February.
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Cited by:
  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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