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Endogenous International Technology Spillovers And Biased Technical Change In The Gtap Model

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  • van Meijl, Hans
  • van Tongeren, Frank W.

Abstract

This paper discusses the implementation of embodied international technology spillovers in the GTAP model. We specify a transmission mechanism for technical knowledge that assumes that knowledge is embodied in traded commodities. The usability of knowledge in the receiving country is dependent on the local absorption capacity (e.g., human capital, knowledge infrastructure) and on structural differences (e.g., factor endowments, climate) between countries. This concept is illustrated first by modeling spillovers embodied in final products and Hicks-neutral technical change. The bulk of the paper deals with factor-biased technical change in agriculture, and its international transmission through traded intermediate inputs. We demonstrate how to implement embodied international technology spillovers in the GTAP model and provide some numerical illustrations which highlight production effects and welfare effects. The GEMPACK implementation, together with additional data, is provided in a set of files which accompanies this paper.

Suggested Citation

  • van Meijl, Hans & van Tongeren, Frank W., 1999. "Endogenous International Technology Spillovers And Biased Technical Change In The Gtap Model," Technical Papers 28710, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugttp:28710
    DOI: 10.22004/ag.econ.28710
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    File URL: https://ageconsearch.umn.edu/record/28710/files/tp15.pdf
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    References listed on IDEAS

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    1. Hans van Meijl, 1997. "Measuring Intersectoral Spillovers: French Evidence," Economic Systems Research, Taylor & Francis Journals, vol. 9(1), pages 25-46.
    2. Bernstein, Jeffrey I. & Mohnen, Pierre, 1998. "International R&D spillovers between U.S. and Japanese R&D intensive sectors," Journal of International Economics, Elsevier, vol. 44(2), pages 315-338, April.
    3. Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(2), pages 385-406, June.
    4. Geoff W. Edwards & John W. Freebairn, 1984. "The Gains from Research into Tradable Commodities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(1), pages 41-49.
    5. Thirtle, Colin & Ball, V. Eldon & Bureau, Jean-Christophe & Townsend, Robert, 1995. "Accounting for Productivity Differences in European Agriculture: Cointegration, Multilateral TFPs and R&D Spillovers," 1994 Conference, August 22-29, 1994, Harare, Zimbabwe 183441, International Association of Agricultural Economists.
    6. Pierre Mohnen, 1994. "The Econometric Approach to R&D Externalities," Cahiers de recherche du Département des sciences économiques, UQAM 9408, Université du Québec à Montréal, Département des sciences économiques.
    7. Earl O. Heady, 1949. "Basic Economic and Welfare Aspects of Farm Technological Advance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(2), pages 293-316.
    8. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    9. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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