Technological Adaptation, Trade, and Growth
October 1, 2000
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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
Pages:
31
Volume:
2000
DOI:
Issue:
161
Series:
Working Paper No. 2000/161
Stock No:
WPIEA1612000
ISBN:
9781451857801
ISSN:
1018-5941
