Does trade and technology transmission facilitate convergence? The role of technology adoption in reducing the inequality of nations
Based on stylized evidence showing variation of the Gini coefficients of income inequality across skill cohorts with the rapid rise in trade in technology-intensive goods, the transmission effects of technology diffusion and income inequality are explored in a global Computable General Equilibrium (CGE) framework. An exogenous technology shock transmitted via trade from the United States induces productivity growth in developing regions. This spillover in technology - aided by absorptive capability, better governance and institutions, technological symmetry and social acceptance - causes income to increase and income inequality to decline. The transmission of technology facilitates convergence of inequality between nations.
Volume (Year): 11 (2008)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/GPRE20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/GPRE20|
When requesting a correction, please mention this item's handle: RePEc:taf:jecprf:v:11:y:2008:i:1:p:67-92. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.