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Microeconomics of Technology Adoption

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  • Foster, Andrew D.
  • Rosenzweig, Mark R.

Abstract

There is an emerging consensus among macro-economists that differences in technology across countries accounts for the major differences in per-capita GDP and the wages of workers with similar skills across countries. Accounting for differences in technology levels across countries thus can go a long way towards understanding global inequality. One mechanism by which poorer countries can catch up with richer countries is through technological diffusion, the adoption by low-income countries of the advanced technologies produced in high-income countries. In this survey, we examine recent micro studies that focus on understanding the adoption process. If technological diffusion is a major channel by which poor countries can develop, it must be the case that technology adoption is incomplete or the inputs associated with the technologies are under-utilized in poor, or slow-growing economies. Thus, obtaining a better understanding of the constraints on adoption are useful in understanding a major component of growth.

Suggested Citation

  • Foster, Andrew D. & Rosenzweig, Mark R., 2010. "Microeconomics of Technology Adoption," Center Discussion Papers 56760, Yale University, Economic Growth Center.
  • Handle: RePEc:ags:yaleeg:56760
    DOI: 10.22004/ag.econ.56760
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    More about this item

    Keywords

    Community/Rural/Urban Development; Farm Management; Food Security and Poverty; International Development; Labor and Human Capital; Land Economics/Use; Production Economics; Productivity Analysis; Research and Development/Tech Change/Emerging Technologies;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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