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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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    Cited by:

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    2. Hertel, Thomas, 2013. "Global Applied General Equilibrium Analysis Using the Global Trade Analysis Project Framework," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 815-876, Elsevier.
    3. Hübler, Michael, 2009. "Avoiding the trap: the dynamic interaction of North-South capital mobility and technology diffusion," Kiel Working Papers 1477, Kiel Institute for the World Economy (IfW Kiel).
    4. Jojo Jacob & Adam Szirmai, 2006. "International Trade and Knowledge Spillovers: The Case of Indonesian Manufacturing," Working Papers 06-01, Eindhoven Center for Innovation Studies, revised Jan 2006.
    5. 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.
    6. Jan Bonenkamp & Martijn van de Ven, 2006. "A small stochastic model of a pension fund with endogenous saving," CPB Memorandum 168.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    7. Hübler, Michael, 2011. "Technology diffusion under contraction and convergence: A CGE analysis of China," Energy Economics, Elsevier, vol. 33(1), pages 131-142, January.
    8. Truong Phuoc Truong, 2010. "A comparative study of selected Asian countries on carbon emission with respect to different trade and climate changes mitigation policy scenarios," Working Papers 8610, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
    9. 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, Wageningen University and Research Center, Agricultural Economics Research Institute.
    10. 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 Research Reports JRC84850, Joint Research Centre (Seville site).
    11. 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.
    12. Jakeman, Guy & Hanslow, Kevin & Hinchy, Mike & Fisher, Brian S. & Woffenden, Kate, 2004. "Induced innovations and climate change policy," Energy Economics, Elsevier, vol. 26(6), pages 937-960, November.
    13. 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 Kiel).
    14. Enrica De Cian & Ramiro Parrado, 2012. "Technology Spillovers Embodied in International Trade: Intertemporal, regional and sectoral effects in a global CGE," Working Papers 2012.27, Fondazione Eni Enrico Mattei.
    15. Enrica De Cian, 2006. "International Technology Spillovers in Climate-Economy Models: Two Possible Approaches," Working Papers 2006.141, Fondazione Eni Enrico Mattei.
    16. Truong Phuoc Truong, 2010. "A comparative study of selected Asian countries on carbon emissions with respect to different trade and climate changes mitigation policy scenarios," ARTNeT Working Papers 86, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    17. Bas Straathof & Gert Jan Linders & Arjan Lejour & Jan Möhlmann, 2008. "The internal market and the Dutch economy: implications for trade and economic growth," CPB Document 168.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    18. Roger Smeets & Albert de Vaal, 2011. "Knowledge diffusion from FDI and Intellectual Property Rights," CPB Discussion Paper 168.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    19. Parrado, Ramiro & De Cian, Enrica, 2014. "Technology spillovers embodied in international trade: Intertemporal, regional and sectoral effects in a global CGE framework," Energy Economics, Elsevier, vol. 41(C), pages 76-89.
    20. Wei Jin, 2012. "International Knowledge Spillover and Technology Externality: Why Multilateral R&D Coordination Matters for Global Climate Governance," CAMA Working Papers 2012-53, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    21. Wei Jin, 2012. "Can China Harness Globalization to Reap Carbon Savings? Modeling International Technology Diffusion in a Multi-region Framework," CAMA Working Papers 2012-52, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    22. 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.
    23. 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), pages 1-38.

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