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Absorption Capacity, Structural Similarity and Embodied Technology Spillovers in a 'Macro' Model: An Implementation Within the GTAP Framework

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  • Gouranga Gopal Das
  • Alan A. Powell

Abstract

In this paper, all technology transfers are embodied in trade flows within a three-region, one-traded-commodity version of the GTAP model. Exogenous Hicks-Neutral technical progress in one region can have uneven impacts on productivity elsewhere. Why? Destination regions' ability to harness new technology depends on their absorptive capacity and on the structural congruence of the source and destination. Together with trade volume, these two factors determine the recipient's spillover coefficient (which measures its success in capturing foreign technology). Armington competition between the outputs of the three economies and shifts in their terms of trade loom large in the general equilibrium adjustment.

Suggested Citation

  • Gouranga Gopal Das & Alan A. Powell, 2000. "Absorption Capacity, Structural Similarity and Embodied Technology Spillovers in a 'Macro' Model: An Implementation Within the GTAP Framework," Centre of Policy Studies/IMPACT Centre Working Papers ip-77, Victoria University, Centre of Policy Studies/IMPACT Centre.
    • Handle: RePEc:cop:wpaper:ip-77
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    References listed on IDEAS

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    1. Eaton, Jonathan & Kortum, Samuel, 1996. "Trade in ideas Patenting and productivity in the OECD," Journal of International Economics, Elsevier, vol. 40(3-4), pages 251-278, May.
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    Cited by:

    1. Das, Gouranga, 2009. "How does trade-mediated technology transfer affect interregional and intersectoral competition? Exploring multi-sectoral effects in a global trade model," MPRA Paper 37256, University Library of Munich, Germany, revised 01 Jun 2010.
    2. Mojtaba Bahmani & Nejati Mehdi, 2015. "Trade-based Technology Transfer and Its Impact on the Iranian Economy: Using a CGE Model," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 19(1), pages 107-122, Winter.
    3. Homma, Takashi & Mori, Shunsuke & Akimoto, Keigo & Tomoda, Toshimasa & Murota, Yasushiro, 2007. "Sectoral economic impacts of CO2 mitigation policies under different levels of stabilization targets: A study with the hybrid model DEARS," Conference papers 331608, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Devarajan, Shantayanan & Go, Delfin S. & Robinson, Sherman & Thierfelder, Karen, 2009. "Tax Policy and Carbon Emissions in South Africa," Conference papers 331869, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. 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.

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    More about this item

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other

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