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Trade Liberalization, Democratization and Technology Adoption

Matteo Cervellati, Alireza Naghavi and Farid Toubal

Working Papers from CEPII research center

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 slowdown if these regime changes are imbalanced. We use panel data on technology adoption at the sectoral level for the period 1980-2000. We exploit within country variation and the heterogenous timing of openness and democratization. The results document the existence of a positive interaction between these institutional changes for technology adoption.

Keywords: Trade Openness; Democratization; Political Economy theory; Technology Adoption; Sector Level Data; Cross-Country Analysis (search for similar items in EconPapers)
JEL-codes: F16 F59 J24 O14 P51 (search for similar items in EconPapers)
Date: 2014-03
New Economics Papers: this item is included in nep-ict and nep-int
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Journal Article: Trade liberalization, democratization, and technology adoption (2018) Downloads
Working Paper: Trade Liberalization, Democratization and Technology Adoption (2013) Downloads
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