Who leads and who lags? Technology Diffusion, E-commerce and Trade Facilitation in a model of Northern hub vis-à-vis Southern spokes
Gouranga Das
Journal of Economic Integration, 2007, vol. 22, 929-972
Abstract:
In this paper, advanced economies are aggregated into ‘North’ whereas ‘South’ comprises the less advanced ones. Trade induced technology diffusion is source of enriched technological contents. We also consider two scenarios: (i—“hub and spokes [HAS]”) the North establishes separate bilateral FTAs with each South; and (ii—“FTASS”) Southern economies jointly establish a full-fledged FTA with North. Simulations confirm that: (i) North- South and South-South trade-led technology diffusion induces TFP-growth; (ii) relatively less developed South catches up; (iii) three regions experience welfare improvement; and (iv) ITenabled E-commerce facilitate trade. Public policies play role in catalyzing international competitiveness, innovativeness and absorption.
Keywords: Technology diffusion; Trade facilitation; Capture; E-commerce; CGE model; Clusters (search for similar items in EconPapers)
JEL-codes: C68 F43 J24 O31 O47 (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0419
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