Why Doesn't Technology Flow from Rich to Poor Countries?

Harold Cole, Jeremy Greenwood and Juan M. Sanchez

No 20856, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: What determines the technology that a country adopts? While many factors affect technological adoption, the efficiency of the country's financial system may also play a significant role. To address this question, a dynamic contract model is embedded into a general equilibrium setting with competitive intermediation. The ability of an intermediary to monitor and control the cash flows of a firm plays an important role in the technology adoption decision. Can such a theory help to explain the differences in total factor productivity and establishment-size distributions across India, Mexico, and the United States? A quantitative illustration suggests the answer is yes.

JEL-codes: D92 E13 G24 O11 O16 (search for similar items in EconPapers)
Date: 2015-01
New Economics Papers: this item is included in nep-dge, nep-eff and nep-mac
Note: EFG
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Citations: View citations in EconPapers (5)

Published as Harold L. Cole & Jeremy Greenwood & Juan M. Sanchez, 2016. "Why Doesn't Technology Flow From Rich to Poor Countries?," Econometrica, Econometric Society, vol. 84, pages 1477-1521, 07.

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Related works:
Journal Article: Why Doesn't Technology Flow From Rich to Poor Countries? (2016)
Journal Article: Why Doesn't Technology Flow From Rich to Poor Countries? (2016)
Working Paper: Why Doesn't Technology Flow from Rich to Poor Countries? (2016)
Working Paper: Why Doesn't Technology Flow from Rich to Poor Countries? (2014)
Working Paper: Why doesn’t technology flow from rich to poor countries? (2012)
Working Paper: Why Doesn't Technology Flow from Rich to Poor Countries? (2012)
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