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Technological adaptation, trade, and growth

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  • Alberto Chong
  • Luisa Zanforlin

Abstract

This paper extends Grossman and Helpman’s seminal work (1991), and presents an endogenous growth model where innovations created in a high-tech sector may be assimilated or adapted by a low-tech sector. Applying a simple Heckscher-Ohlin framework, the effects of technological diffusion are found to allow a country relatively scarce in human capital to benefit from nondecreasing rates of growth through its low-tech sector. The model is tested by using a dynamic panel data approach (Arellano and Bover, 1995). Results are consistent with the predictions of the model and robust to a broad range of definitions of technological intensity.
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Suggested Citation

  • Alberto Chong & Luisa Zanforlin, 2001. "Technological adaptation, trade, and growth," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(4), pages 565-592, December.
    • Handle: RePEc:spr:weltar:v:137:y:2001:i:4:p:565-592
    DOI: 10.1007/BF02707424
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    References listed on IDEAS

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    Cited by:

    1. Alberto Chong, 2004. "Inequality, Democracy, and Persistence: Is There a Political Kuznets Curve?," Economics and Politics, Wiley Blackwell, vol. 16(2), pages 189-212, July.
    2. Alberto Chong, 2001. "Desigualdad, democracia y persistencia: ¿existe una curva Kuznets política?," Research Department Publications 4254, Inter-American Development Bank, Research Department.
    3. Marton Gosztonyi, 2023. "Comparative Analysis of X-Y-Z Generation Entrepreneurs in a Semi-Peripheral EU Member Country: Insights from Regularized Regression Techniques," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 191-217.
    4. Mr. Allan D. Brunner, 2003. "The Long-Run Effects of Tradeon Income and Income Growth," IMF Working Papers 2003/037, International Monetary Fund.

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    More about this item

    Keywords

    O40; F14; F15;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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