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Economic Growth and Technology Diffusion in Developing Countries

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  • Ji Uk Kim

    (Chung-Ang University)

Abstract

This paper aims to use the system-GMM estimation to fit an augmented Solow growth model with international technology diffusion variables. We also investigate whether the parameters of the model differ appreciably across subsamples of countries. The paper finds that foreign direct investment is a more important channel for technology transfer to developing countries than openness to international trade. Furthermore, the estimates indicate that the more rapidly technology transfer is made, the greater is the stock of human capital accumulated.

Suggested Citation

  • Ji Uk Kim, 2008. "Economic Growth and Technology Diffusion in Developing Countries," Korean Economic Review, Korean Economic Association, vol. 24, pages 413-424.
    • Handle: RePEc:kea:keappr:ker-20081231-24-2-05
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    References listed on IDEAS

    as
    1. Stephen Bond & Anke Hoeffler & Jonathan Temple, 2001. "GMM Estimation of Empirical Growth Models," Economics Papers 2001-W21, Economics Group, Nuffield College, University of Oxford.
    2. Benhabib, Jess & Spiegel, Mark M., 2005. "Human Capital and Technology Diffusion," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 13, pages 935-966, Elsevier.
    3. repec:ebl:ecbull:v:15:y:2008:i:12:p:1-10 is not listed on IDEAS
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    Cited by:

    1. Chien-Chiang Lee & Chi-Chuan Lee & Chun-Ping Chang, 2015. "Globalization, Economic Growth and Institutional Development in China," Global Economic Review, Taylor & Francis Journals, vol. 44(1), pages 31-63, March.
    2. Ji Uk Kim, 2020. "Technology diffusion, absorptive capacity, and income convergence for Asian developing countries: a dynamic spatial panel approach," Empirical Economics, Springer, vol. 59(2), pages 569-598, August.

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    More about this item

    Keywords

    Augmented Solow Model; Technology Diffusion; System GMM;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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