Trade Liberalization, Democratization and Technology Adoption

Matteo Cervellati, Alireza Naghavi and Farid Toubal

No 7132, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We study the role of trade liberalization, democratization and their interaction for technology adoption. A general equilibrium theory with heterogeneous skills predicts a complementarity between trade and political regimes. Openness should accelerate technology adoption if coupled with democratization but may lead to a slow down if these regime changes are imbalanced. We use panel data on technology adoption at the sectoral level for the period 1980-2000 by exploiting within country variation and the heterogenous timing of openness and democratization. The results document the existence of robust positive interactions between these institutional changes for technology adoption and productivity growth.

Keywords: technology adoption; political economy theory; democratization; trade openness; sector level panel data; cross-country analysis (search for similar items in EconPapers)
JEL-codes: F16 F59 J24 O14 P51 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2013-01
New Economics Papers: this item is included in nep-int and nep-pol
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Published - published in: Journal of Economic Growth, 2018, 23 (2), 145-173

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Related works:
Journal Article: Trade liberalization, democratization, and technology adoption (2018)
Working Paper: Trade Liberalization, Democratization and Technology Adoption (2014)
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