Openness, Technology Capital, and Development

Edward Prescott and Ellen McGrattan

No 111, 2008 Meeting Papers from Society for Economic Dynamics

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.

Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2008/paper_111.pdf (application/pdf)

Related works:
Journal Article: Openness, technology capital, and development (2009)
Working Paper: Openness, technology capital, and development (2008)
Working Paper: Openness, technology capital, and development (2007)
Working Paper: Openness, Technology Capital, and Development (2007)
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:red:sed008:111

Access Statistics for this paper

More papers in 2008 Meeting Papers from Society for Economic Dynamics Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().