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How to Reap the Induced Technological Bonus? A Mechanism and Illustrative Implementation

Gouranga Das

MPRA Paper from University Library of Munich, Germany

Abstract: Exogenous technical progress can have uneven impacts on productivity contingent on absorptive capacity, structural congruence and trade intensity. The paper illustrates the role of enabling behind-the-border factors for effective absorption and is pertinent for discussing issues like ‘Europe 2020’or Lisbon strategy for inclusive growth. Drawing on our model, we illustrate that the capture-parameter is the propellant force for effective assimilation of foreign technology of recent vintage. The capture parameter is the outcome of endogenous decision-making process. The ‘productivity bonus’ mechanism leaves room for changing the results via skill-mix composition. However, it awaits implementation in a large-scale economy-wide modeling framework for further extension.

Keywords: Trade; Technology Spillover; Capture; Productivity; Congruence (search for similar items in EconPapers)
JEL-codes: D50 C0 O30 O3 (search for similar items in EconPapers)
Date: 2009, Revised 2010
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Published in Modern Economy 1.1(2010): pp. 80-88

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