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Technology Gap, Catching-up and Outward Orientation: Analysis of 63 countries

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  • Kris IYER

Abstract

This paper examines the determinants of technological catching-up across 63 countries over the period 1982-2000 using a two staged approach. In the first stage, a measure of the technology gap between countries and the global technology frontier is computed. A positive growth of this measure is interpreted as technological catching-up. In the second stage, technology gap and technological catching-up are regressed against trade openness, FDI inflows and FDI outflows, domestic R&D, and human capital. Two main findings emerge. First, technologically backward countries catch-up faster. Second, FDI inflows, trade openness and human capital have positive effects on closing the technology gap.

Suggested Citation

  • Kris IYER, 2011. "Technology Gap, Catching-up and Outward Orientation: Analysis of 63 countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 11(2).
  • Handle: RePEc:eaa:aeinde:v:11:y:2011:i:2_1
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    References listed on IDEAS

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    Cited by:

    1. Aye, G.C. & Goswami, S. & Gupta, R., 2013. "Metropolitan House Prices In Regions of India: Do They Converge?," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 13(1), pages 135-144.
    2. Goodness C. Aye & Samrat Goswami & Rangan Gupta, 2012. "Metropolitan House Prices In India: Do They Converge?," Working Papers 201220, University of Pretoria, Department of Economics.
    3. Rashid NIKZAD, 2014. "Revisiting the Impacts of Domestic and Foreign Technology Spillovers on Canadian Industries, 1978-1997," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 14(1), pages 73-86.

    More about this item

    Keywords

    Metafrontier; technology gap; catching-up; absorptive capacity; foreign direct investment.;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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