IDEAS home Printed from https://ideas.repec.org/a/eee/jpolmo/v37y2015i1p65-91.html
   My bibliography  Save this article

Why some countries are slow in acquiring new technologies? A model of trade-led diffusion and absorption

Author

Listed:
  • Das, Gouranga Gopal

Abstract

Drawing on the stylized facts and evidences, in a computable general equilibrium (CGE) model, this paper examines the impact on TFP of North–South, North–North trade-related triangular R&D spillovers. By constructing different technology appropriation parameters based on embodied and disembodied R&D, absorption and learning effects, it shows: (i) North–South R&D flows have a positive impact on TFP; (ii) human capital-induced skill facilitates North–South R&D flows; (iii) socio-institutional and technology adoption parameters do play roles for knowledge flows, its capture, and transmission. Such technology diffusion and assimilation counters the adverse impact of North–South geographical distance on productivity dynamics.

Suggested Citation

  • Das, Gouranga Gopal, 2015. "Why some countries are slow in acquiring new technologies? A model of trade-led diffusion and absorption," Journal of Policy Modeling, Elsevier, vol. 37(1), pages 65-91.
    • Handle: RePEc:eee:jpolmo:v:37:y:2015:i:1:p:65-91
    DOI: 10.1016/j.jpolmod.2015.01.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0161893815000022
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jpolmod.2015.01.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. anonymous, 1995. "Does the bouncing ball lead to economic growth?," Regional Update, Federal Reserve Bank of Atlanta, issue Jul, pages 1-2,4-6.
    2. Stephen Kosempel, 2007. "Interaction between knowledge and technology: a contribution to the theory of development," Canadian Journal of Economics, Canadian Economics Association, vol. 40(4), pages 1237-1260, November.
    3. Salvatore, Dominick, 2007. "Growth, international inequalities, and poverty in a globalizing world," Journal of Policy Modeling, Elsevier, vol. 29(4), pages 635-641.
    4. Ojha, Vijay P. & Pradhan, Basanta K. & Ghosh, Joydeep, 2013. "Growth, inequality and innovation: A CGE analysis of India," Journal of Policy Modeling, Elsevier, vol. 35(6), pages 909-927.
    5. Robert J. Barro, 2013. "Inflation and Economic Growth," Annals of Economics and Finance, Society for AEF, vol. 14(1), pages 121-144, May.
    6. Robert E. Lucas, 2009. "Ideas and Growth," Economica, London School of Economics and Political Science, vol. 76(301), pages 1-19, February.
    7. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2007. "Governance Matters VI: Aggregate and Individual Governance Indicators, 1996-2006," Policy Research Working Paper Series 4280, The World Bank.
    8. Tang, Linghui & Koveos, Peter E., 2008. "Embodied and disembodied R&D spillovers to developed and developing countries," International Business Review, Elsevier, vol. 17(5), pages 546-558, October.
    9. Mary Amiti & Jozef Konings, 2007. "Trade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia," American Economic Review, American Economic Association, vol. 97(5), pages 1611-1638, December.
    10. Wolfgang Keller, 2004. "International Technology Diffusion," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 752-782, September.
    11. Jorgenson, Dale W. & Vu, Khuong M., 2011. "The rise of developing Asia and the new economic order," Journal of Policy Modeling, Elsevier, vol. 33(5), pages 698-716, September.
    12. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    13. Maurice Schiff & Yanling Wang, 2006. "North-South and South-South trade-related technology diffusion: an industry-level analysis of direct and indirect effects," Canadian Journal of Economics, Canadian Economics Association, vol. 39(3), pages 831-844, August.
    14. Neil Foster-McGregor & Anders Isaksson & Florian Kaulich, 2014. "Importing, exporting and performance in sub-Saharan African manufacturing firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(2), pages 309-336, May.
    15. Calderón, César & Fuentes, J. Rodrigo, 2012. "Removing the constraints for growth: Some guidelines," Journal of Policy Modeling, Elsevier, vol. 34(6), pages 948-970.
    16. Charles I. Jones & Paul M. Romer, 2010. "The New Kaldor Facts: Ideas, Institutions, Population, and Human Capital," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(1), pages 224-245, January.
    17. 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.
    18. Diao, Xinshen & Rattso, Jorn & Stokke, Hildegunn Ekroll, 2005. "International spillovers, productivity growth and openness in Thailand: an intertemporal general equilibrium analysis," Journal of Development Economics, Elsevier, vol. 76(2), pages 429-450, April.
    19. anonymous, 1995. "Forming a community development corporation," Banking and Community Perspectives, Federal Reserve Bank of Dallas, issue Jun, pages 6-8.
    20. Robert E. Lucas, 2009. "Trade and the Diffusion of the Industrial Revolution," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 1-25, January.
    21. Benjamin F. Jones, 2008. "The Knowledge Trap: Human Capital and Development Reconsidered," NBER Working Papers 14138, National Bureau of Economic Research, Inc.
    22. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    23. Itzhak Goldberg & Lee Branstetter & John Gabriel Goddard & Smita Kuriakose, 2008. "Globalization and Ttechnology Absorption in Europe and Central Asia : The Role of Trade, FDI, and Cross-Border Knowledge Flows," World Bank Publications - Books, The World Bank Group, number 6445.
    24. Xavier Sala-I-Martin, 1997. "Transfers, Social Safety Nets, and Economic Growth," IMF Staff Papers, Palgrave Macmillan, vol. 44(1), pages 81-102, March.
    25. Herrerias, M.J. & Orts, Vicente, 2013. "Capital goods imports and long-run growth: Is the Chinese experience relevant to developing countries?," Journal of Policy Modeling, Elsevier, vol. 35(5), pages 781-797.
    26. Clark Don P. & Highfill Jannett & de Oliveira Campino Jonas & Rehman Scheherazade S., 2011. "FDI, Technology Spillovers, Growth, and Income Inequality: A Selective Survey," Global Economy Journal, De Gruyter, vol. 11(2), pages 1-44, July.
    27. Jorgenson, Dale W. & Vu, Khuong Minh, 2013. "The emergence of the new economic order: Growth in the G7 and the G20," Journal of Policy Modeling, Elsevier, vol. 35(3), pages 389-399.
    28. Francesco Caselli & Wilbur John Coleman II, 2006. "The World Technology Frontier," American Economic Review, American Economic Association, vol. 96(3), pages 499-522, June.
    29. Di Vita, Giuseppe, 2013. "The TRIPs agreement and technological innovation," Journal of Policy Modeling, Elsevier, vol. 35(6), pages 964-977.
    30. Vivek Arora & Athanasios Vamvakidis, 2005. "How Much Do Trading Partners Matter for Economic Growth?," IMF Staff Papers, Palgrave Macmillan, vol. 52(1), pages 24-40, April.
    31. Arora, Vivek & Vamvakidis, Athanasios, 2004. "The Impact of U.S. Economic Growth on the Rest of the World: How Much Does It Matter?," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 19, pages 1-18.
    32. Bitzer, Jürgen & Kerekes, Monika, 2008. "Does foreign direct investment transfer technology across borders? New evidence," Economics Letters, Elsevier, vol. 100(3), pages 355-358, September.
    33. Bergstrand, Jeffrey H, 1985. "The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 474-481, August.
    34. Yanling Wang, 2007. "Trade, Human Capital, and Technology Spillovers: an Industry‐level Analysis," Review of International Economics, Wiley Blackwell, vol. 15(2), pages 269-283, May.
    35. Coe, David T. & Helpman, Elhanan & Hoffmaister, Alexander W., 2009. "International R&D spillovers and institutions," European Economic Review, Elsevier, vol. 53(7), pages 723-741, October.
    36. Steve Onyeiwu, 2011. "Does Lack of Innovation and Absorptive Capacity Retard Economic Growth in Africa?," WIDER Working Paper Series wp-2011-019, World Institute for Development Economic Research (UNU-WIDER).
    37. Christine Zhen-Wei Qiang, 2007. "China's Information Revolution : Managing the Economic and Social Transformation," World Bank Publications - Books, The World Bank Group, number 6606.
    38. Jeffrey A. Frankel, 1997. "Regional Trading Blocs in the World Economic System," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 72, April.
    39. Gouranga Gopal Das, 2002. "Trade, Technology and Human Capital: Stylised Facts and Quantitative Evidence," The World Economy, Wiley Blackwell, vol. 25(2), pages 257-281, February.
    40. Duval, Romain & de la Maisonneuve, Christine, 2010. "Long-run growth scenarios for the world economy," Journal of Policy Modeling, Elsevier, vol. 32(1), pages 64-80, January.
    41. Szirmai A. & Gebreeyesus M. & Guadagno F. & Verspagen B., 2013. "Promoting productive employment in Sub‐Saharan Africa : a review of the literature," MERIT Working Papers 2013-062, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    42. Lee, Gwanghoon, 2005. "Direct versus indirect international R&D spillovers," Information Economics and Policy, Elsevier, vol. 17(3), pages 334-348, July.
    43. Bayraktar-Sağlam, Bahar & Yetkiner, Hakan, 2014. "A Romerian contribution to the empirics of economic growth," Journal of Policy Modeling, Elsevier, vol. 36(2), pages 257-272.
    44. Asian Development Bank (ADB), 2014. "Innovative Asia: Advancing the Knowledge-Based Economy: The Next Policy Agenda," ADB Reports RPT146801-3, Asian Development Bank (ADB).
    45. Bernard Hoekman & Beata Smarzynska Javorcik, 2006. "Global Integration and Technology Transfer," World Bank Publications - Books, The World Bank Group, number 6962.
    46. Vivarelli, Marco, 2014. "Structural Change and Innovation as Exit Strategies from the Middle Income Trap," IZA Discussion Papers 8148, Institute of Labor Economics (IZA).
    47. Bengoa, Marta & Sanchez-Robles, Blanca, 2005. "Policy shocks as a source of endogenous growth," Journal of Policy Modeling, Elsevier, vol. 27(2), pages 249-261, March.
    48. Klein, Lawrence & Salvatore, Dominick, 2013. "Shift in the world economic center of gravity from G7 to G20," Journal of Policy Modeling, Elsevier, vol. 35(3), pages 416-424.
    49. World Bank, 2010. "Innovation Policy : A Guide for Developing Countries," World Bank Publications - Books, The World Bank Group, number 2460.
    50. World Bank, 2008. "Global Economic Prospects 2008 : Technology Diffusion in the Developing World," World Bank Publications - Books, The World Bank Group, number 6335.
    51. Das, Gouranga, 2009. "How to Reap the Induced Technological Bonus? A Mechanism and Illustrative Implementation," MPRA Paper 37921, University Library of Munich, Germany, revised 2010.
    52. Undp, 1995. "HDR 1995 - Gender and Human Development," Human Development Report (1990 to present), Human Development Report Office (HDRO), United Nations Development Programme (UNDP), number hdr1995, September.
    53. Cosar A. Kerem, 2011. "Human Capital, Technology Adoption and Development," The B.E. Journal of Macroeconomics, De Gruyter, vol. 11(1), pages 1-41, March.
    54. Salvatore, Dominick, 2004. "Growth and poverty in a globalizing world," Journal of Policy Modeling, Elsevier, vol. 26(4), pages 543-551, June.
    55. Santos-Paulino, Amelia U. & Wan, Guanghua (ed.), 2010. "Southern Engines of Global Growth," OUP Catalogue, Oxford University Press, number 9780199580606.
    56. Parente, Stephen L & Prescott, Edward C, 1994. "Barriers to Technology Adoption and Development," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 298-321, April.
    57. Steve Onyeiwu, 2011. "Does Lack of Innovation and Absorptive Capacity Retard Economic Growth in Africa?," WIDER Working Paper Series 019, World Institute for Development Economic Research (UNU-WIDER).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Das, Gouranga G. & Maswana, Jean-Claude & Hirano, Yumeka, 2023. "Germs, Globalization, and Trade Spillovers: How could COVID-19 affect African Economies and AfCFTA," GLO Discussion Paper Series 1251, Global Labor Organization (GLO).
    2. Das, Gouranga G. & Drine, Imed, 2020. "Distance from the technology frontier: How could Africa catch-up via socio-institutional factors and human capital?," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    3. Das, Gouranga G. & Ginting, Edimon & Horridge, Mark & Yamano, Takashi, 2023. "Growth Constraints and Structural Diversification for Kyrgyzstan Economy: Policy Analysis of Key Reforms and its Implications," GLO Discussion Paper Series 1250, Global Labor Organization (GLO).
    4. Gouranga G. Das & Zeynep Akgul & Badri G. Narayanan, 2023. "How Do Productivity Benefits Spill Over Across Firms? Explorations in a Heterogeneous Firm Applied General Equilibrium Trade Model," Politická ekonomie, Prague University of Economics and Business, vol. 2023(2), pages 104-129.
    5. Das, Gouranga Gopal & Marjit, Sugata & Kar, Mausumi, 2020. "The Impact of Immigration on Skills, Innovation and Wages: Education Matters more than where People Come from," Journal of Policy Modeling, Elsevier, vol. 42(3), pages 557-582.
    6. Kant, Chander, 2016. "Are institutions in developing countries malleable?," Journal of Policy Modeling, Elsevier, vol. 38(2), pages 272-289.
    7. Nazlioglu, Saban & Huseyni, İbrahim & Tunc, Ahmet & Payne, James E., 2024. "Productivity convergence in international trade: The role of industrial-based policies," Journal of Policy Modeling, Elsevier, vol. 46(1), pages 1-19.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Das, Gouranga, 2010. "Globalization, socio-institutional factors and North–South knowledge diffusion: Role of India and China as Southern growth progenitors," MPRA Paper 37252, University Library of Munich, Germany, revised 01 Aug 2011.
    2. Das, Gouranga G. & Drine, Imed, 2020. "Distance from the technology frontier: How could Africa catch-up via socio-institutional factors and human capital?," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    3. T. Gries & R. Grundmann & I. Palnau & M. Redlin, 2017. "Innovations, growth and participation in advanced economies - a review of major concepts and findings," International Economics and Economic Policy, Springer, vol. 14(2), pages 293-351, April.
    4. Neil Foster-McGregor, 2012. "Innovation and Technology Transfer across Countries," wiiw Research Reports 380, The Vienna Institute for International Economic Studies, wiiw.
    5. Perez-Sebastian, Fidel, 2000. "Transitional dynamics in an R&D-based growth model with imitation: Comparing its predictions to the data," Journal of Monetary Economics, Elsevier, vol. 45(2), pages 437-461, April.
    6. Costantini, Valeria & Liberati, Paolo, 2014. "Technology transfer, institutions and development," Technological Forecasting and Social Change, Elsevier, vol. 88(C), pages 26-48.
    7. Holger Strulik, 2014. "Knowledge And Growth In The Very Long Run," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55(2), pages 459-482, May.
    8. Hugo Erken & Piet Donselaar & Roy Thurik, 2018. "Total factor productivity and the role of entrepreneurship," The Journal of Technology Transfer, Springer, vol. 43(6), pages 1493-1521, December.
    9. Luh, Yir-Hueih & Jiang, Wun-Ji & Huang, Szu-Chi, 2016. "Trade-related spillovers and industrial competitiveness: Exploring the linkages for OECD countries," Economic Modelling, Elsevier, vol. 54(C), pages 309-325.
    10. Rattsø, Jørn & Stokke, Hildegunn E., 2012. "Trade policy in a growth model with technology gap dynamics and simulations for South Africa," Journal of Economic Dynamics and Control, Elsevier, vol. 36(7), pages 1042-1056.
    11. Alberto Franco Pozzolo, 2004. "Endogenous growth in open economies: a surveys," Temi di discussione (Economic working papers) 527, Bank of Italy, Economic Research and International Relations Area.
    12. Das, Gouranga, 2008. "Technology Diffusion, E-commerce and Trade Facilitation in a model of Northern hub vis-à-vis Southern spokes -A Tale of Two Souths," Conference papers 330241, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. repec:got:cegedp:145 is not listed on IDEAS
    14. Amavilah, Voxi Heinrich, 2014. "Knowledge = Technology + Human Capital and the Lucas and Romer Production Functions," MPRA Paper 58847, University Library of Munich, Germany.
    15. Jørn Rattsø & Hildegunn E. Stokke, 2013. "Trade, Skill Biased Technical Change and Wage Inequality in South Africa," Review of International Economics, Wiley Blackwell, vol. 21(3), pages 419-431, August.
    16. Bahar, Dany & Hausmann, Ricardo & Hidalgo, Cesar A., 2014. "Neighbors and the evolution of the comparative advantage of nations: Evidence of international knowledge diffusion?," Journal of International Economics, Elsevier, vol. 92(1), pages 111-123.
    17. Lindner, Ines & Strulik, Holger, 2014. "The great divergence: A network approach," University of Göttingen Working Papers in Economics 193, University of Goettingen, Department of Economics.
    18. Bode, Eckhardt, 2001. "Is regional innovative activity path-dependent? An empirical analysis for Germany," Kiel Working Papers 1058, Kiel Institute for the World Economy (IfW Kiel).
    19. Jesús López-Rodríguez & J. Andrés Faíña, 2000. "Human Capital Accumulation and Geography: Empirical Evidence in the European Union," Regional and Urban Modeling 283600060, EcoMod.
    20. Dellis, Konstantinos, 2020. "Knowledge diffusion and financial development thresholds," LSE Research Online Documents on Economics 107882, London School of Economics and Political Science, LSE Library.
    21. Das, Gouranga G., 2014. "What Role for 'Learning'? A North-South Tale of Enrichment Effect∗," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 67-85, March.

    More about this item

    Keywords

    Technology diffusion; Trade; Syndromes; Capture; R&D;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jpolmo:v:37:y:2015:i:1:p:65-91. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505735 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.