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Endogenous International Technology Spillovers and Biased Technical Change in Agriculture

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  • Hans van Meijl
  • Frank van Tongeren

Abstract

This paper analyzes trade-related knowledge flows from an innovating country to other countries. It is assumed that knowledge is embodied in commodities traded between countries and that the potential productivity of this knowledge is determined by the local usability of foreign technologies. The usability of foreign knowledge is dependent on the local absorption capacity (such as knowledge infrastructure and human capital) and on structural differences (factor endowments or climate) between countries. In agriculture, a large portion of the knowledge is embodied in inputs which cause factor-biased technical change in the receiving sectors. Trade-related knowledge transmission is introduced in an applied multi-region general equilibrium model (GTAP) to study the macro-economic and sectoral impacts of knowledge spillovers and of trade policies. Endogenous embodied technology spillovers bear some important implications for trade policy, because protective measures preclude countries not only from cheaper imports but also from foreign technologies.

Suggested Citation

  • 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.
  • Handle: RePEc:taf:ecsysr:v:11:y:1999:i:1:p:31-48
    DOI: 10.1080/09535319900000004
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    Citations

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    Cited by:

    1. Jin, Wei, 2015. "Can China harness globalization to reap domestic carbon savings? Modeling international technology diffusion in a multi-region framework," China Economic Review, Elsevier, vol. 34(C), pages 64-82.
    2. Das, Gouranga & Powell, Alan A. L., 2000. "Absorption Capacity, Structural Similarity and Embodied Technology Spillovers in A ‘Macro’ Model: An Implementation within a CGE Framework," MPRA Paper 37258, University Library of Munich, Germany, revised 01 Jul 2001.
    3. Hans Meijl & Frank Tongeren, 1998. "Trade, technology spillovers, and food production in China," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(3), pages 423-449, September.
    4. van Tongeren, Frank W. & Huang, Jikun, 2004. "China'S Food Economy In The Early 21st Century; Development Of China'S Food Economy And Its Impact On Global Trade And On The Eu," Report Series 29093, Agricultural Economics Research Institute.
    5. Robert M´barek & Ivelin Iliev Rizov, 2013. "European Coexistence Bureau. Best Practice Documents for coexistence of genetically modified crops with conventional and organic farming. 3. Coexistence of genetically modified maize and honey product," JRC Working Papers JRC84850, Joint Research Centre (Seville site).
    6. Hübler, Michael, 2009. "Energy saving technology diffusion via FDI and trade: a CGE model of China," Kiel Working Papers 1479, Kiel Institute for the World Economy (IfW).
    7. Das, Gouranga, 2000. "Absorptive capacity and structural congruence: the binding constraints on the acquisition of technology--an analytical survey of the underlying issues," MPRA Paper 37257, University Library of Munich, Germany, revised 01 Jan 2001.
    8. Christoph Schmitz & Hans van Meijl & Page Kyle & Gerald C. Nelson & Shinichiro Fujimori & Angelo Gurgel & Petr Havlik & Edwina Heyhoe & Daniel Mason d'Croz & Alexander Popp & Ron Sands & Andrzej Tabea, 2014. "Land-use change trajectories up to 2050: insights from a global agro-economic model comparison," Agricultural Economics, International Association of Agricultural Economists, vol. 45(1), pages 69-84, January.
    9. van Berkum, Siemen & van Meijl, Hans, 2000. "The application of trade and growth theories to agriculture: a survey," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(4), December.

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