Absorption Capacity, Structural Similarity and Embodied Technology Spillovers in A ‘Macro’ Model: An Implementation within a CGE Framework

Gouranga Das and Alan Powell

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, all technology transfers are embodied in trade flows within a three-region, one-traded-commodity version of the GTAP model. Exogenous Hicks-Neutral technical progress in one region can have uneven impacts on productivity elsewhere. Why? Destination regions’ ability to harness new technology depends on their absorptive capacity and the structural congruence of the source and destination. Together with trade volume, these two factors determine the recipient’s spillover coefficient (which measures its success in capturing foreign technology). Armington competition between the outputs of the three economies and shifts in their terms of trade loom large in the general equilibrium adjustment.

Keywords: Absorption Capacity; Capture Parameter; Trade; Technology Spillover; and CGE (search for similar items in EconPapers)
JEL-codes: D58 F1 O3 (search for similar items in EconPapers)
Date: 2000-01-01, Revised 2001-07-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in The Korean Journal of Policy Studies, Seoul National University. 1.16(2002): pp. 111-132

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