{
  "title": "Do Capital Inflows Spur Technology Diffusion? Evidence from a New Technology Adoption Index",
  "publication": "IMF Working Papers, March 1, 2024",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2024/03/01/do-capital-inflows-spur-technology-diffusion-evidence-from-a-new-technology-adoption-index-545456",
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  "summary": "We construct a novel measure of technology adoption, the Embodied Technology Imports Indicator (ETI), available for 181 countries over the period 1970-2020.",
  "sections": [
    {
      "heading": "Novel measure: Embodied Technology Imports Indicator (ETI)",
      "content": "- ETI constructed for 181 countries over the period 1970-2020.\n- ETI measures the technological intensity of imports by leveraging patent data from PATSTAT and product-level trade data from COMTRADE.\n- ETI described as a technology score used to assess technology diffusion across emerging economies and low-income countries."
    },
    {
      "heading": "Methodology",
      "content": "- Empirical approach: local projection difference-in-differences.\n- Identification leverages variations in statutory capital flow regulations and associated liberalization episodes.\n- Data sources: PATSTAT (patent data) and COMTRADE (product-level trade data)."
    },
    {
      "heading": "Main empirical findings",
      "content": "- Variations in statutory capital flow regulations increase technological intensity (ETI) by 7-9 percentage points over 5 to 10 years.\n- The ETI increase is accompanied by a 28-33 pp rise in the volume of gross capital inflows over the same horizon.\n- The rise in gross capital inflows is driven primarily by foreign direct investment, with a 21 pp increase.\n- A 9 to 12 percentage points shift is observed in the level of Real GDP per capita in PPP terms following the regulatory variations."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject: Balance of payments, Capital account, Capital account liberalization, Capital flows, Imports, International trade, Technology.\n- Keywords: Capital account, Capital account liberalization, Capital account openness., Capital flows, ETI indicator, Global, IMF working paper No. 2024/44, Imports, liberalization episode, natural logarithm, standard deviation, Technology diffusion, Technology measurement, technology score.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2024/03/01/do-capital-inflows-spur-technology-diffusion-evidence-from-a-new-technology-adoption-index-545456"
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    "Authors: Gabriela Cugat, Andrea Manera",
    "Published: March 1, 2024",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400269509.001",
    "ETI constructed for 181 countries over the period 1970-2020.",
    "ETI measures the technological intensity of imports by leveraging patent data from PATSTAT and product-level trade data from COMTRADE.",
    "ETI described as a technology score used to assess technology diffusion across emerging economies and low-income countries.",
    "Empirical approach: local projection difference-in-differences.",
    "Identification leverages variations in statutory capital flow regulations and associated liberalization episodes.",
    "Data sources: PATSTAT (patent data) and COMTRADE (product-level trade data).",
    "Variations in statutory capital flow regulations increase technological intensity (ETI) by 7-9 percentage points over 5 to 10 years.",
    "The ETI increase is accompanied by a 28-33 pp rise in the volume of gross capital inflows over the same horizon.",
    "The rise in gross capital inflows is driven primarily by foreign direct investment, with a 21 pp increase.",
    "A 9 to 12 percentage points shift is observed in the level of Real GDP per capita in PPP terms following the regulatory variations.",
    "Subject: Balance of payments, Capital account, Capital account liberalization, Capital flows, Imports, International trade, Technology.",
    "Keywords: Capital account, Capital account liberalization, Capital account openness., Capital flows, ETI indicator, Global, IMF working paper No. 2024/44, Imports, liberalization episode, natural logarithm, standard deviation, Technology diffusion, Technology measurement, technology score.",
    "**Working Paper**"
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