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Who leads and who lags? Technology Diffusion, E-commerce and Trade Facilitation in a model of Northern hub vis-à-vis Southern spokes

Author

Listed:
  • Das, Gouranga G.

    (Hanyang University)

Abstract

In this paper, advanced economies are aggregated into ‘North’ whereas ‘South’ comprises the less advanced ones. Trade induced technology diffusion is source of enriched technological contents. We also consider two scenarios: (i—“hub and spokes [HAS]”) the North establishes separate bilateral FTAs with each South; and (ii—“FTASS”) Southern economies jointly establish a full-fledged FTA with North. Simulations confirm that: (i) North- South and South-South trade-led technology diffusion induces TFP-growth; (ii) relatively less developed South catches up; (iii) three regions experience welfare improvement; and (iv) ITenabled E-commerce facilitate trade. Public policies play role in catalyzing international competitiveness, innovativeness and absorption.

Suggested Citation

  • Das, Gouranga G., 2007. "Who leads and who lags? Technology Diffusion, E-commerce and Trade Facilitation in a model of Northern hub vis-à-vis Southern spokes," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 22, pages 929-972.
    • Handle: RePEc:ris:integr:0419
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    Citations

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    Cited by:

    1. Gouranga G. Das, 2020. "Trade War, Global Restructuring and Global Production Network: Beating the Odds," Foreign Trade Review, , vol. 55(1), pages 7-12, February.
    2. Das, Gouranga & Bhattacharya, Swapan K., 2009. "Do south-south trade agreements enhance member countries' trade? evaluating implications for development potential in the context of SAARC," MPRA Paper 37255, University Library of Munich, Germany, revised 01 Oct 2010.
    3. Swapan K. Bhattacharya & Gouranga G. Das, 2014. "Can South–South Trade Agreements Reduce Development Deficits?," Journal of South Asian Development, , vol. 9(3), pages 253-285, December.

    More about this item

    Keywords

    Technology diffusion; Trade facilitation; Capture; E-commerce; CGE model; Clusters;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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