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The impact of knowledge trade on sustainable development and environment-biased technical progress

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  • Song, Ma-Lin
  • Cao, Shao-Peng
  • Wang, Shu-Hong

Abstract

This paper proposed a theoretical model of knowledge trade based on the new economic growth theory and investigated the impact of knowledge trade on sustainable development. The MSIH-VAR model was used to test the impact of three forms of knowledge trade (direct introduction of technology, technological spillovers of foreign direct investment (FDI), and reverse deconstruction of imported products) on sustainable development, production technology, and environmental technology. The impulse response equation indicates that developing countries can only improve their environmental technology levels through the direct introduction of technology. To prove the impact of knowledge trade on sustainable development, the interaction term of environmental technology and knowledge trade was included in the analysis to obtain a dynamic panel model. The research results indicate that knowledge trade in the form of both direct introduction of technology and reverse deconstruction of imported products can improve sustainable development locally. Below a certain level of environmental technology, knowledge trade has a positive impact on sustainable development, irrespective of its form.

Suggested Citation

  • Song, Ma-Lin & Cao, Shao-Peng & Wang, Shu-Hong, 2019. "The impact of knowledge trade on sustainable development and environment-biased technical progress," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 512-523.
    • Handle: RePEc:eee:tefoso:v:144:y:2019:i:c:p:512-523
    DOI: 10.1016/j.techfore.2018.02.017
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