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Trade Liberalization, Democratization and Technology Adoption

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  • Matteo Cervellati
  • Alireza Naghavi
  • Farid Toubal

Abstract

We study the role of trade liberalization, democratization and their interaction for technology adoption. A general equilibrium theory with heterogeneous skills predicts a complementarity between trade and political regimes. Openness should accelerate technology adoption if coupled with democratization but may lead to a slowdown if these regime changes are imbalanced. We use panel data on technology adoption at the sectoral level for the period 1980-2000. We exploit within country variation and the heterogenous timing of openness and democratization. The results document the existence of a positive interaction between these institutional changes for technology adoption.

Suggested Citation

  • Matteo Cervellati & Alireza Naghavi & Farid Toubal, 2014. "Trade Liberalization, Democratization and Technology Adoption," Working Papers 2014-08, CEPII research center.
  • Handle: RePEc:cii:cepidt:2014-08
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    2. Rabah Arezki & Vianney Dequiedt & Rachel Fan & Carlo Rossotto, 2021. "Liberalization, Technology Adoption, and Stock Returns: Evidence from Telecom," Working Papers hal-03174354, HAL.
    3. Isotta Mac Fadden & Monica Santana & Esteban Vázquez-Cano & Eloy López-Meneses, 2021. "A science mapping analysis of ‘marginality, stigmatization and social cohesion’ in WoS (1963–2019)," Quality & Quantity: International Journal of Methodology, Springer, vol. 55(1), pages 275-293, February.
    4. Park, Jun-ki & Ryu, Deockhyun & Lee, Keun, 2019. "What determines the economic size of a nation in the world: Determinants of a nation’s share in world GDP vs. per capita GDP," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 203-214.
    5. Michiel Gerritse, 2015. "Does trade cause long-run development? Theory and evidence from countries behind the Suez channel," ERSA conference papers ersa15p1100, European Regional Science Association.
    6. Jayasekara, Dinithi N. & Fredriksson, Per G., 2021. "Culture, intellectual property rights, and technology adoption," The Quarterly Review of Economics and Finance, Elsevier, vol. 80(C), pages 317-330.
    7. Okada, Keisuke & Samreth, Sovannroeun, 2020. "Do political regimes matter for technology diffusion?," MPRA Paper 103728, University Library of Munich, Germany.
    8. Isotta Mac Fadden & Monica Santana & Esteban Vázquez-Cano & Eloy López-Meneses, 0. "A science mapping analysis of ‘marginality, stigmatization and social cohesion’ in WoS (1963–2019)," Quality & Quantity: International Journal of Methodology, Springer, vol. 0, pages 1-19.
    9. Oyèkọ́lá, Ọláyínká, 2021. "Where do people live longer?," Research in Economics, Elsevier, vol. 75(1), pages 21-44.

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    More about this item

    Keywords

    Trade Openness; Democratization; Political Economy theory; Technology Adoption; Sector Level Data; Cross-Country Analysis;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other

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