Technology Gap, Catching-up and Outward Orientation: Analysis of 63 countries

Kris Iyer

Applied Econometrics and International Development, 2011, vol. 11, issue 2

Abstract: This paper examines the determinants of technological catching-up across 63 countries over the period 1982-2000 using a two staged approach. In the first stage, a measure of the technology gap between countries and the global technology frontier is computed. A positive growth of this measure is interpreted as technological catching-up. In the second stage, technology gap and technological catching-up are regressed against trade openness, FDI inflows and FDI outflows, domestic R&D, and human capital. Two main findings emerge. First, technologically backward countries catch-up faster. Second, FDI inflows, trade openness and human capital have positive effects on closing the technology gap.

Keywords: Metafrontier; technology gap; catching-up; absorptive capacity; foreign direct investment. (search for similar items in EconPapers)
JEL-codes: C33 F02 O47 O57 (search for similar items in EconPapers)
Date: 2011
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