Technological Adaptation, Trade, and Growth

October 1, 2000

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Format: Chicago

Alberto Chong, and Luisa Zanforlin. Technological Adaptation, Trade, and Growth, (USA: International Monetary Fund, 2000) accessed September 19, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper extends Grossman and Helpman’s seminal work (1991), and presents an endogenous growth model where innovations created in a high-tech sector may be assimilated or adapted by a low-tech sector. Applying a simple Heckscher-Ohlin framework, the effects of technological diffusion are found to allow a country relatively scarce in human capital to benefit from nondecreasing rates of growth through its low-tech sector. The model is tested by using a dynamic panel data approach (Arellano and Bover, 1995). Results are consistent with the predictions of the model and robust to a broad range of definitions of technological intensity.

Subject: Econometric analysis, Estimation techniques, Exports, Human capital, International trade, Labor, Technology, Unskilled labor

Keywords: Assimilation, Comparative advantage, Dynamic Panel Data, East Asia, Estimation techniques, Export category, Exports, GMM system estimator, Growth, High-tech goods, Human capital, Imitation, Input-output coefficient, Parent export, Production function, Rate of growth, Technology, Unskilled labor, WP

Publication Details

Pages:

31
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2000/161
Stock No:

WPIEA1612000
ISBN:

9781451857801
ISSN:

1018-5941

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