Download or read book International Technology Diffusion Via Goods Trade written by Eugene Beaulieu and published by . This book was released on 2016 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops a multi-product firm model of international trade with the endogenous decisions on export and import to study technology diffusion via goods trade. In our model, a firm?s productivity in a product is a combination of its general ability which applies to all the goods the firm produces and product expertise which applies only to a particular good. Within each firm, the decisions of export and import are based on product expertise. Technology diffuses via goods trade, therefore a firm can improve its productivity by reverse-engineering the imported advanced foreign products. We use Chinese trade data to empirically analyze our theory. The results show that a firm will import the product in the category where it already has higher expertise, which is consistent with the theoretical prediction. We find that a firm?s productivity in a category gets improved when it imports in the same category, but only product expertise gets accumulated, not the firm ability.

Download or read book International Trade Technology Diffusion and the Role of Diffusion Barriers written by Yao Amber Li and published by . This book was released on 2014 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper assesses the welfare impact of trade and technology diffusion as well as the change in the cross-country distribution of GDP due to removal of trade costs and diffusion barriers. The model extends the multi-country Ricardian trade model of Alvarez and Lucas (2007) to include technology diffusion with diffusion barriers. A key feature of the model is that some countries export goods produced by foreign technology via diffusion. The model is calibrated to match the world GDP distribution, the merchandise trade and technology diffusion shares of GDP, and real GDP per capita for a sample of 31 countries. Data on international trade in royalties, license fees, and information intensive services are used as proxies for international technology diffusion. There are three key findings. First, the welfare gains from removing diffusion barriers are 4-60% across countries, generally larger than the gains from removing trade costs (8-40%). The main reason is that diffusion has a larger impact on the nontradable sector due to the substitutability between trade and diffusion in the tradable sector. Another reason is that diffusion barriers are generally larger than trade costs. Second, removing trade costs and diffusion barriers has little impact on reducing the dispersion of real GDP per capita (measured by Gini index) across countries. Compared to the benchmark, free diffusion decreases the Gini by 4%, and free trade decreases the Gini by 2%. Third, removing diffusion barriers increases trade, which indicates that diffusion may enhance trade.

Download or read book Spinning the Web written by Réka Juhász and published by . This book was released on 2018 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies how information and communication technology (ICT) improvements affect trade along the value chain and international technology diffusion. We examine the impact of a revolutionary technology, the roll-out of the global telegraph network, on the 19th century cotton textile industry. First, we show that connection to the telegraph disproportionately increased trade in intermediate goods relative to final goods. We document that this was due to differences in codifiability; that is, the extent to which product specifications could be communicated at a distance using only words (and thus by sending telegrams) as opposed to inspecting a sample of the product. Second, adoption of the telegraph also facilitated international technology diffusion through the complementary mechanisms of importing machinery and acquiring knowledge of the production process and local demand through importing intermediates. These results shed light on how ICT facilitates the formation of global value chains and the diffusion of frontier technology.

Download or read book Global Integration and Technology Transfer written by Bernard M. Hoekman and published by World Bank Publications. This book was released on 2006-04-27 with total page 370 pages. Available in PDF, EPUB and Kindle. Book excerpt: The importance of international technology diffusion (ITD) for economic development can hardly be overstated. Both the acquisition of technology and its diffusion foster productivity growth. Developing countries have long sought to use both national policies and international agreements to stimulate ITD. The 'correct' policy intervention, if any, depends critically upon the channels through which technology diffuses internationally and the quantitative effects of the various diffusion processes on efficiency and productivity growth. Neither is well understood. New technologies may be embodied in goods and transferred through imports of new varieties of differentiated products or capital goods and equipment, they may be obtained through exposure to foreign buyers or foreign investors or they may be acquired through arms-length trade in intellectual property, e.g., licensing contracts. 'Global Integration and Technology Transfer' uses cross-country and firm level panel data sets to analyze how specific activities exporting, importing, FDI, joint ventures impact on productivity performance.

Download or read book Technology Diffusion on the International Trade Network written by Gary D. Ferrier and published by . This book was released on 2015 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: New technologies generate positive externalities -- non-innovators can benefit through the adoption or imitation of the new technologies. International trade serves as a major channel for technology diffusion, allowing importing countries to acquire technical knowledge that they can potentially internalize. To empirically test the effects of trade on technology diffusion, the previous literature typically considers the effects of direct (bilateral) trade on indirect measures of technologies (e.g., TFP). We conjecture that the impact of trade on technology diffusion would be more accurately measured by taking into account both the direct and indirect network effects and by using direct measures of technologies (e.g., intensity levels). The international trade system can be considered as a weighted network. Technology may be diffused, not only bilaterally between countries, but also through the network effects, i.e., indirectly by trading with intermediate countries. We find that the network effects of trade play a significant role in technology diffusion. In most cases, countries better-connected on the trade network have higher technology intensities. Further support for the importance of trade is provided by our finding that for “outdated” technologies, better-connected countries have lower technology intensities.

Download or read book International Technology Diffusion written by Wolfgang Keller and published by . This book was released on 2002 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt: I discuss the concept and empirical importance of international technology diffusion from the point of view of recent work on endogenous technological change. In this literature, technology is viewed as technological knowledge. I first review the major concepts, and how international technology diffusion relates to other factors affecting economic growth in open economies. The following main section of the paper provides a review of recent empirical results on (i) basic results in international technology diffusion; (ii) the importance of specific channels of diffusion, in particular trade and foreign direct investment; (iii) the spatial distribution of technological knowledge, and (iv) other issues.

Download or read book Technological Diffusion Through Trade and Imitation written by Michelle P. Connolly and published by . This book was released on 1997 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: "An endogenous growth model is developed demonstrating both static and dynamic gains from trade for developing nations due to the beneficial effects of trade on imitation and technological diffusion. The concept of learning-to-learn in both imitative and innovative processes is incorporated into a quality ladder model with North-South trade. Domestic technological progress occurs via innovation or imitation, while growth is driven by technological advances in the quality of domestically available inputs, regardless of country of origin. In the absence of trade, Southern imitation of Northern technology leads to asymptotic conditional convergence between the two countries, demonstrating the positive effect of imitation on Southern growth. Free trade generally results in a positive feedback effect between Southern imitation and Northern innovation yielding a higher common steady-state growth rate. Immediate conditional convergence occurs. Thus, trade in this model confers dynamic as well as static benefits to the less developed South, even when specializing in imitative processes"--Abstract.

Download or read book Borrowing Constraints and Technology Diffusion written by Yong Kim and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops a theory of total factor productivity differences in a framework of technology diffusion. I show how in countries with tighter borrowing constraints, frontier technologies diffuse more slowly, and old outdated technologies continue to be used. I analyse how countries with different borrowing constraints specialise across new and old technologies through two forms of intra-industry trade. First, I consider international factor mobility which is interpreted as a form of (vertically differentiated) intermediate goods trade. Second, I consider trade in (vertically differentiated) final goods. Under both forms of trade, poor countries with tighter borrowing constraints exploit their comparative advantage through specialising in older technologies. However, under international factor mobility, poor countries can adopt new technologies faster by gaining access to inputs which complement the use of newer technologies. The patterns of specialisation across technologies are dramatically different under each form of trade. Despite this, both forms of trade are consistent with total factor productivity divergence between countries with different borrowing constraints.

Download or read book Determinants of Diffusion and Downstreaming of Technology intensive Products in International Trade written by Lauren Deason and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Trade Patents and International Technology Diffusion written by Bin Xu and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates similarities and differences between developed and less developed countries in international technology diffusion. We measure international technology spillovers in trade, patents, and in disembodied forms. We find that all countries benefit from foreign technology. However, DCs and LDCs benefit from different pools of foreign technology. Total factor productivity in DCs is associated with world R&D input, while that in LDCs with locally patented foreign technology. We identify several determinants of the foreign patenting rate. Patent protection is found to be a key for LDCs to receive foreign technology.

Download or read book North South Technological Diffusion written by Michelle Connolly and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The transitional dynamics for both a developed and a less developed country are derived when North-South trade leads to technological diffusion through reverse engineering of intermediate goods in a quality ladder model of endogenous growth. Domestic technological progress occurs via innovation or imitation, while growth is driven by technological advances in the quality of domestically available inputs, regardless of country of origin. The concept of learning-to-learn is incorporated into both imitative and innovative processes. International trade with imitation leads to feedback effects between Southern imitators and Northern innovators who compete for the world market. Hence, both countries face transition paths dependent on the relative technologies in the two countries. For reasonable parameter values, the rates of innovation and imitation are both falling in transition to steady-state and yet remain above that under autarky. Increased interaction between the North and the South, through increased openness to imports of Northern intermediate goods, leads to higher world growth, demonstrating dynamic benefits to the South of increased trade with a more developed country. The transition to steady-state in which the rate of innovation in the developed country falls as the developing country reduces the technology gap between the two countries may explain the apparent recent slowdown of total factor productivity growth in OECD countries over the last 30 years.

Download or read book Technology Diffusion Through Trade with Heterogeneous Firms written by Bulent Unel and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: I investigate the long-run implications of trade and technology diffusion through trade, when firms are heterogeneous and trade is costly. This paper integrates firm heterogeneity and trade into a product innovation growth model from endogenous growth theory. I find that although exposure to trade increases average productivity, it has an ambiguous effect on economic growth and consumer welfare.

Download or read book Technology Trade in Economic Development written by Matthias Busse and published by . This book was released on 2007 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent evidence on the respective contributions of institutions and trade to income levels across countries has demonstrated that - once endogeneity is considered - institutional quality clearly dominates the effect of trade. We argue that overall trade is not the most appropriate measure for technology diffusion as a source of productivity growth and propose to focus on imports of research and development (R & D) intensive goods instead. Overall, we confirm previous findings that institutions matter most and that overall trade is not positively associated with per-capita income levels. Yet this does not hold for technology trade, as there is a positive and significant linkage between technology imports and income levels. This outcome is robust to various model specifications, including an instrumental variable approach. -- Growth ; Technology Diffusion ; Trade ; R & D Spillovers

Download or read book North South Technological Diffusion and Dynamic Gains from Trade written by Michelle Connolly and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper revisits the question of gains from trade in a dynamic setting from the perspective of an R&D based growth model of technological diffusion. The transition paths, as well as steady-state growth paths, are analyzed for a developed and a developing nation trading in intermediate and final goods. Static computable general equilibrium (CGE) models have yielded only small welfare gain estimates (.5-1%) for trade liberalization. Dynamic models have increased these estimates (up to 10%), but often ignore feedback effects caused by technological diffusion and generally consider only steady-state welfare effects. These feedback effects are especially important due to the long transition paths they induce for both countries. This paper studies the transitional dynamics in a quality ladder model of endogenous growth in which North-South trade leads to technological diffusion through reverse engineering of intermediate goods. The concept of learning-to-learn is incorporated into both imitative and innovative processes, which in turn drive domestic technological progress. International trade with imitation leads to feedback effects between Southern imitators and Northern innovators who compete for the world market. Consequently, both regions face transition paths dependent on their relative technologies. When the South liberalizes its trade, world growth increases, leading to welfare gains of 5% for the South. While the North also experiences steady-state welfare gains, the transition costs borne by the North during the long transition lead to an overall loss in Northern welfare. Still, this loss is attributable to the lack of intellectual property rights (IPRs) rather than trade per se. Interestingly, imposition of IPRs not only leads to an overall welfare gain for the North, but also further boosts Southern welfare gains up to 16%, again because of the feedback effects in technology.

Download or read book The Role of Inter and Intraindustry Trade in Technology Diffusion written by Dalia S. Hakura and published by . This book was released on 1999 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Is North South Trade Related Technology Diffusion Regional written by Yanling Wang and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is an influential literature on trade-related technology diffusion. This article contributes to that literature by investigating whether north-south trade-related technology diffusion has a regional dimension. To do so, we build a weighted foreign research and development index at the industry level to account for international and interindustry technology spillovers. Using parallel analysis for nine developing countries, we find: (1) north-south trade-related technology diffusion is strong and significant and (2) north-south technology diffusion tends to have a regional dimension: developing countries in Asia, Latin America, and the Middle East tend to benefit, respectively, more from trade with Japan, North America, and Europe than from trade with other northern regions.

Download or read book How Trade Patterns and Technology Flows Affect Productivity Growth written by Wolfgang Keller and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: As a factor influencing productivity, a country's own research and development to generate new technology is more important than that of the average foreign country. It is generally difficult to separate the effect of importing intermediate goods with embodied technology from the effect of other channels of international technology transmission. According to this study, international trade contributes 20 percent of the total effect on productivity from foreign research and development investments. Earlier studies of spillovers from international research and development (R&D) suggest how economies benefit from R&D conducted abroad. To the extent that countries importing new technologies do not pay in full for the increased variety in intermediate inputs in production, they are reaping an external, or spillover, effect. Keller analyzes a particular mechanism through which economies benefit from foreign R&D. He estimates the extent to which a country benefits from imports of intermediate goods that embody new technology - result of foreign investments in R&D. He distinguishes this mechanism from others unrelated to international trade. Using industry-level data for eight OECD countries (Sweden and the G-7 countries) between 1970 and 1991, he estimates the underlying model of trade and growth. This empirical analysis leads to several findings about spillovers from international R&D. First, the productivity effects of foreign R&D vary substantially, depending on which country is conducting the R&D. The quality of newly created technology varies. Second, as a factor influencing productivity, a country's own R&D is more important than that of the average foreign country. It is difficult to separate the effect of importing intermediate goods with embodied technology from a more general spillover effect; often both are present. Third, in Keller's sample of industrial countries, international trade contributes about 20 percent of the total effect on productivity from foreign R&D investments. Keller conjectures that this effect could be higher for less industrialized countries importing from OECD countries, but he stresses that alternative mechanisms (such as foreign direct investment) should be included when estimating the effects of international trade in the international diffusion of technology. This paper - product of the Development Research Group - part of a larger effort in the group to analyze the impact of trade, technology, and foreign direct investment on growth in developing countries.