Trade Liberalization, Democratization and Technology Adoption
Matteo Cervellati (),
Alireza Naghavi () and
Working Papers from CEPII research center
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 J24 O14 P51 F59 (search for similar items in EconPapers)
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Journal Article: Trade liberalization, democratization, and technology adoption (2018)
Working Paper: Trade Liberalization, Democratization and Technology Adoption (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:cii:cepidt:2014-08
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