Technology diffusion and uneven development

Klemen Knez

Journal of Evolutionary Economics, 2023, vol. 33, issue 4, No 6, 1195 pages

Abstract: Abstract We propose a conceptualisation of the process of technology adoption that takes into account the uneven relative costs of technology implementation, especially country differences in wage levels. The novelties and contributions of our approach are the following. First, we introduce a dynamic macroeconomic model of technology diffusion, which is the first to directly account for the difference in factor cost proportions in an endogenous cross-country setting. Second, we utilise the Cross-country Historical Adoption of Technology (CHAT) and Penn World Table databases to calibrate the model using non-linear approximation across countries and technologies, which explains about 50% of the variability in technology density. Third, the results of the calibrated model offer a new insight into the dynamics and patterns of technology diffusion of differently developed countries, offering both an approximation of the average technology adoption across differently developed countries over time and an approximation of the relative technology density adoption curves, which are country specific generalisations of the logistic curves and depend highly on the general level of development and wage levels.

Keywords: Technology diffusion; Uneven development; Choice of technique; Wage differentials (search for similar items in EconPapers)
JEL-codes: O14 O33 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s00191-023-00830-w Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:joevec:v:33:y:2023:i:4:d:10.1007_s00191-023-00830-w

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/191/PS2

DOI: 10.1007/s00191-023-00830-w

Access Statistics for this article

Journal of Evolutionary Economics is currently edited by Uwe Cantner, Elias Dinopoulos, Horst Hanusch and Luigi Orsenigo

More articles in Journal of Evolutionary Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().