IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/37256.html
   My bibliography  Save this paper

How does trade-mediated technology transfer affect interregional and intersectoral competition? Exploring multi-sectoral effects in a global trade model

Author

Listed:
  • Das, Gouranga

Abstract

In this paper, all technology transfers are embodied in trade flows within a three-region, six-tradedcommodity version of the GTAP model. 4% Hicks-Neutral technical progress in heavy manufacturing in one region has uneven impacts on productivity elsewhere. Why? Destination regions’ ability to harness new technology depends on their absorptive capacity and on the structural congruence of the source and destination. Together with trade volume, these two factors determine the recipient’s success in capturing foreign technology. Sectors, intensive in heavy manufacturing, register higher productivity growth. Inter-regional competition coupled with changes in price relativities, loom large in general equilibrium adjustment. Hicks-neutrality of the TFP (total factor productivity) improvement implies that, at the initial configuration of inputs, the marginal products of land, labour, and capital, change by the same proportion in any region. However, for the experiment conducted, productivity changes and the spillover coefficients dominate the variable impact across sectors and regions.

Suggested Citation

  • Das, Gouranga, 2009. "How does trade-mediated technology transfer affect interregional and intersectoral competition? Exploring multi-sectoral effects in a global trade model," MPRA Paper 37256, University Library of Munich, Germany, revised 01 Jun 2010.
    • Handle: RePEc:pra:mprapa:37256
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/37256/1/MPRA_paper_37256.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
    3. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    4. 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.
    5. Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander W, 1997. "North-South R&D Spillovers," Economic Journal, Royal Economic Society, vol. 107(440), pages 134-149, January.
    6. Keller, Wolfgang, 2001. "The Geography and Channels of Diffusion at the World's Technology Frontier," Discussion Paper Series 26140, Hamburg Institute of International Economics.
    7. 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.
    8. Gouranga Gopal Das & Alan A. Powell, 2000. "Absorption Capacity, Structural Similarity and Embodied Technology Spillovers in a 'Macro' Model: An Implementation Within the GTAP Framework," Centre of Policy Studies/IMPACT Centre Working Papers ip-77, Victoria University, Centre of Policy Studies/IMPACT Centre.
    9. Hans Meijl & Frank Tongeren, 1998. "Trade, technology spillovers, and food production in China," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(3), pages 423-449, September.
    Full references (including those not matched with items on IDEAS)

    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. Gouranga Gopal Das & Soamiely Andriamananjara, 2006. "Hub-and-Spokes Free Trade Agreements in the Presence of Technology Spillovers: An Application to the Western Hemisphere," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(1), pages 33-66, April.
    2. Das, Gouranga Gopal, 2005. "Information age to genetic revolution: Embodied technology transfer and assimilation — A tale of two technologies," MPRA Paper 37250, University Library of Munich, Germany, revised 2006.
    3. 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.
    4. 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.
    5. Das, Gouranga Gopal & Alavalapati, Janaki, 2001. "Trade-mediated biotechnology transfer and its effective absorption: an application to the U.S. forestry sector," MPRA Paper 37254, University Library of Munich, Germany, revised 01 Feb 2002.
    6. Dimaranan, Betina V., 2005. "GTAP Data Base: Sources, Construction, and Distribution," Conference papers 331320, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Das, Gouranga, 2000. "Absorptive capacity and structural congruence: the binding constraints on the acquisition of technology--an analytical survey of the underlying issues," MPRA Paper 37257, University Library of Munich, Germany, revised 01 Jan 2001.
    8. Meijl, Hans van & Tongeren, Frank van, 2004. "International diffusion of gains from biotechnology and the European Union's Common Agricultural Policy," Agricultural Economics, Blackwell, vol. 31(2-3), pages 307-316, December.
    9. Mojtaba Bahmani & Nejati Mehdi, 2015. "Trade-based Technology Transfer and Its Impact on the Iranian Economy: Using a CGE Model," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 19(1), pages 107-122, Winter.
    10. 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.
    11. repec:use:tkiwps:1818 is not listed on IDEAS
    12. Pop Silaghi, Monica Ioana & Alexa, Diana & Jude, Cristina & Litan, Cristian, 2014. "Do business and public sector research and development expenditures contribute to economic growth in Central and Eastern European Countries? A dynamic panel estimation," Economic Modelling, Elsevier, vol. 36(C), pages 108-119.
    13. Rachel Griffith & Stephen Redding & John Van Reenen, 2004. "Mapping the Two Faces of R&D: Productivity Growth in a Panel of OECD Industries," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 883-895, November.
    14. Mastromarco, Camilla & Ghosh, Sucharita, 2009. "Foreign Capital, Human Capital, and Efficiency: A Stochastic Frontier Analysis for Developing Countries," World Development, Elsevier, vol. 37(2), pages 489-502, February.
    15. Lehner, Maria & Schnitzer, Monika, 2008. "Entry of foreign banks and their impact on host countries," Journal of Comparative Economics, Elsevier, vol. 36(3), pages 430-452, September.
    16. Parrado, Ramiro & De Cian, Enrica, 2014. "Technology spillovers embodied in international trade: Intertemporal, regional and sectoral effects in a global CGE framework," Energy Economics, Elsevier, vol. 41(C), pages 76-89.
    17. Gouranga Gopal Das, 2008. "Does trade and technology transmission facilitate convergence? The role of technology adoption in reducing the inequality of nations," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 11(1), pages 67-92.
    18. Teixeira, Aurora A.C. & Fortuna, Natércia, 2010. "Human capital, R&D, trade, and long-run productivity. Testing the technological absorption hypothesis for the Portuguese economy, 1960-2001," Research Policy, Elsevier, vol. 39(3), pages 335-350, April.
    19. Bin Qiu & Shuai Yang & Peijiang Xin & Berna Kirkulak, 2009. "FDI technology spillover and the productivity growth of China’s manufacturing sector," Frontiers of Economics in China, Springer;Higher Education Press, vol. 4(2), pages 209-227, June.
    20. Fulvio Castellacci, 2007. "Technological regimes and sectoral differences in productivity growth ," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(6), pages 1105-1145, December.
    21. Patrik Tingvall & Andreas Poldahl, 2012. "Determinants of Firm R&D: The Role of Relationship-Specific Interactions for R&D Spillovers," Journal of Industry, Competition and Trade, Springer, vol. 12(4), pages 395-411, December.

    More about this item

    Keywords

    Absorptive capacity; capture parameter; trade; technology; Armington; TFP (total factor productivity);
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

    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:pra:mprapa:37256. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.