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Absorption Capacity, Structural Similarity and Embodied Technology Spillovers in A ‘Macro’ Model: An Implementation within a CGE Framework

Author

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  • Das, Gouranga
  • Powell, Alan A. L.

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 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

  • Das, Gouranga & Powell, Alan A. L., 2000. "Absorption Capacity, Structural Similarity and Embodied Technology Spillovers in A ‘Macro’ Model: An Implementation within a CGE Framework," MPRA Paper 37258, University Library of Munich, Germany, revised 01 Jul 2001.
  • Handle: RePEc:pra:mprapa:37258
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    File URL: https://mpra.ub.uni-muenchen.de/37258/1/MPRA_paper_37258.pdf
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    References listed on IDEAS

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    1. Robert J. Barro, 2013. "Inflation and Economic Growth," Annals of Economics and Finance, Society for AEF, vol. 14(1), pages 121-144, May.
    2. 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.
    3. Keller, Wolfgang, 1996. "Absorptive capacity: On the creation and acquisition of technology in development," Journal of Development Economics, Elsevier, vol. 49(1), pages 199-227, April.
    4. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 83-116.
    5. Hans van Meijl & Frank van Tongeren, 1999. "Endogenous International Technology Spillovers and Biased Technical Change in Agriculture," Economic Systems Research, Taylor & Francis Journals, vol. 11(1), pages 31-48.
    6. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685.
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    Citations

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    Cited by:

    1. Gouranga Gopal Das, 2002. "Trade-Induced Technology Spillover And Adoption: A Quantitative General Equilibrium Application," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 27(2), pages 21-44, December.
    2. Hong, Chanyoung & Yang, Heewon & Hwang, Wonsik & Lee, Jeong-Dong, 2014. "Validation of an R&D-based computable general equilibrium model," Economic Modelling, Elsevier, vol. 42(C), pages 454-463.

    More about this item

    Keywords

    Absorption Capacity; Capture Parameter; Trade; Technology Spillover; and CGE;

    JEL classification:

    • F1 - International Economics - - Trade
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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