Impact of International Technological-Knowledge Diffusion on Southern Convergence

Oscar Afonso and Paulo B Vasconcelos
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Paulo B Vasconcelos: Universidade do Porto

No 224, Computing in Economics and Finance 2006 from Society for Computational Economics

Abstract: In the standard models of North-South technological-knowledge diffusion, the larger the initial technological-knowledge gap between countries is, the higher the Southern catching up. However, this result does not adjust well to Southern reality as a whole. The purpose of this paper is to demonstrate that the disparity between the theoretical outcome and the empirical findings can be reduced by considering that: (i) the South can only imitate Northern technological knowledge when it is sufficiently close to the Northern frontier; (ii) the advantage of the South's moderate backwardness, together with its imitation capacity, is a mechanism of catching up with the North; and (iii) the Southern catching-up specification can be country specific. In particular, we show that the behavior of the South's relative level of employed human capital affects Southern imitation capacity and depends on the catching-up specifications

Keywords: North-South; R&D; Human Capital; Convergence; Numerical Computations (search for similar items in EconPapers)
JEL-codes: C63 J24 O11 (search for similar items in EconPapers)
Date: 2006-07-04
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Persistent link: https://EconPapers.repec.org/RePEc:sce:scecfa:224

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