EconPapers    
Economics at your fingertips  
 

Openness, technology capital, and development

Ellen McGrattan and Edward Prescott

No 396, Staff Report from Federal Reserve Bank of Minneapolis

Abstract: In this paper, we extend the growth model to include firm-specific technology capital and use it to assess the gains from opening to foreign direct investment. A firm's technology capital is its unique know-how from investing in research and development, brands, and organization capital. What distinguishes technology capital from other forms of capital is the fact that a firm can use it simultaneously in multiple domestic and foreign locations. Foreign technology capital is exploited by permitting foreign direct investment by multinationals. In both steady-state and transitional analyses, the extended growth model predicts large gains to being open.

Keywords: Technology; -; Economic; aspects (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-bec and nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.minneapolisfed.org/research/SR/SR396.pdf
http://www.minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=1100 (application/pdf)

Related works:
Journal Article: Openness, technology capital, and development (2009) Downloads
Working Paper: Openness, Technology Capital, and Development (2008) Downloads
Working Paper: Openness, technology capital, and development (2007) Downloads
Working Paper: Openness, Technology Capital, and Development (2007) Downloads
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:fip:fedmsr:396

Access Statistics for this paper

More papers in Staff Report from Federal Reserve Bank of Minneapolis Contact information at EDIRC.
Bibliographic data for series maintained by Kate Hansel ().

 
Page updated 2025-03-30
Handle: RePEc:fip:fedmsr:396