Why Doesn't Technology Flow from Rich to Poor Countries?
Harold Cole (),
Jeremy Greenwood and
No 20856, NBER Working Papers from National Bureau of Economic Research, Inc
What determines the technology that a country adopts? While many factors affect technological adoption, the efficiency of the country's financial system may also play a significant role. To address this question, a dynamic contract model is embedded into a general equilibrium setting with competitive intermediation. The ability of an intermediary to monitor and control the cash flows of a firm plays an important role in the technology adoption decision. Can such a theory help to explain the differences in total factor productivity and establishment-size distributions across India, Mexico, and the United States? A quantitative illustration suggests the answer is yes.
JEL-codes: D92 E13 G24 O11 O16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-eff and nep-mac
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Published as Harold L. Cole & Jeremy Greenwood & Juan M. Sanchez, 2016. "Why Doesn't Technology Flow From Rich to Poor Countries?," Econometrica, Econometric Society, vol. 84, pages 1477-1521, 07.
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Journal Article: Why Doesn't Technology Flow From Rich to Poor Countries? (2016)
Working Paper: Why Doesn't Technology Flow from Rich to Poor Countries? (2016)
Working Paper: Why doesn’t technology flow from rich to poor countries? (2015)
Working Paper: Why Doesn't Technology Flow from Rich to Poor Countries? (2014)
Working Paper: Why Doesn't Technology Flow from Rich to Poor Countries? (2012)
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