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Biotechnological Innovations in the Forestry Sector and their Economic Impacts on Other Sectors via Embodied Technology Transfer: An Investigation within Dynamic GTAP Framework

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  • Das, Gouranga G.
  • Alavalapati, Janaki R. R.

Abstract

In this paper, we consider technology transfers embodied in trade flows within a seven-region, seven-traded-commodity version of the dynamic GTAP model. 0.63% Hicks-Neutral technical progress in forestry sector (logging) in source regions has differential impacts on productivity of the logging-user sectors. This is ascribed to the differential rates of induced technology transmission via traded intermediates. Destination regions’ ability to utilize new technology depends on their absorptive capacity (AC) and structural similarity (SS). Together with trade flows, these two factors determine the recipient’s success in assimilating foreign technology. Sectors intensive in logging like wood products, paper products, publishing register higher productivity growth. Differences in productivity improvements depend on the differentials in the magnitude of technology capture.

Suggested Citation

  • Das, Gouranga G. & Alavalapati, Janaki R. R., 2001. "Biotechnological Innovations in the Forestry Sector and their Economic Impacts on Other Sectors via Embodied Technology Transfer: An Investigation within Dynamic GTAP Framework," Conference papers 330908, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:330908
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