{
  "title": "Does Trade and Technology Transmission Facilitate Inequality Convergence? An Inquiry into the Role of Technology in Reducing the Poverty of Nations",
  "publication": "IMF Working Papers, January 1, 2007",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/does-trade-and-technology-transmission-facilitate-inequality-convergence-an-inquiry-into-the-19860",
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  "summary": "Based on stylized evidence showing variation of the Gini coefficient of income inequality across skill cohorts and on the rapid rise in trade in technology-intensive goods, the ripple effects of technology transmission and income inequality are explored in a global Computable General Equilibrium (CG",
  "sections": [
    {
      "heading": "Summary and main findings",
      "content": "- Based on stylized evidence showing variation of the Gini coefficient of income inequality across skill cohorts and on the rapid rise in trade in technology-intensive goods, the ripple effects of technology transmission and income inequality are explored in a global Computable General Equilibrium (CGE) framework.\n- An exogenous technology shock transmitted via trade from the United States induces productivity growth in developing regions.\n- The technology spillover—captured aided by absorptive capability, better governance and institutions, technological symmetry and social acceptance—causes income to increase and income inequality to decline.\n- The conjoined parameters retard growth's inequality-enhancing effect and thus facilitate long-run convergence of inequality between nations."
    },
    {
      "heading": "Methodology and analytical framework",
      "content": "- Analytical approach: global Computable General Equilibrium (CGE) framework.\n- Key empirical anchors: variation of the Gini coefficient across skill cohorts; rapid rise in trade in technology-intensive goods.\n- Shock studied: exogenous technology shock originating in the United States and transmitted via trade.\n- Transmission and amplification factors examined: absorptive capability, governance and institutions, technological symmetry, social acceptance."
    },
    {
      "heading": "Policy implications and interpretation",
      "content": "- Technology transmission via trade can yield productivity gains in developing regions and reduce income inequality when accompanied by:\n  - strong absorptive capability;\n  - better governance and institutions;\n  - technological symmetry; and\n  - social acceptance.\n- These factors jointly mitigate any inequality-enhancing effects of growth and support long-run inequality convergence across nations.\n\n---\n\n Content in this bundle\n\n- wp0716 - References\n  - wp0716 - References (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp0716 - References (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/does-trade-and-technology-transmission-facilitate-inequality-convergence-an-inquiry-into-the-19860"
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    "[Markdown version](/en/publications/wp/issues/2016/12/31/does-trade-and-technology-transmission-facilitate-inequality-convergence-an-inquiry-into-the-19860/index.md)",
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    "Authors: Gouranga Gopal Das",
    "Published: January 1, 2007",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451865806.001",
    "Based on stylized evidence showing variation of the Gini coefficient of income inequality across skill cohorts and on the rapid rise in trade in technology-intensive goods, the ripple effects of technology transmission and income inequality are explored in a global Computable General Equilibrium (CGE) framework.",
    "An exogenous technology shock transmitted via trade from the United States induces productivity growth in developing regions.",
    "The technology spillover—captured aided by absorptive capability, better governance and institutions, technological symmetry and social acceptance—causes income to increase and income inequality to decline.",
    "The conjoined parameters retard growth's inequality-enhancing effect and thus facilitate long-run convergence of inequality between nations.",
    "Analytical approach: global Computable General Equilibrium (CGE) framework.",
    "Key empirical anchors: variation of the Gini coefficient across skill cohorts; rapid rise in trade in technology-intensive goods.",
    "Shock studied: exogenous technology shock originating in the United States and transmitted via trade.",
    "Transmission and amplification factors examined: absorptive capability, governance and institutions, technological symmetry, social acceptance.",
    "Technology transmission via trade can yield productivity gains in developing regions and reduce income inequality when accompanied by:",
    "These factors jointly mitigate any inequality-enhancing effects of growth and support long-run inequality convergence across nations.",
    "**_wp0716 - References**"
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