Technological Adaptation, Trade, and Growth
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
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.
Series:
Working Paper No. 2000/161
Subject:
Econometric analysis Estimation techniques Exports Human capital International trade Labor Technology Unskilled labor
English
Publication Date:
October 1, 2000
ISBN/ISSN:
9781451857801/1018-5941
Stock No:
WPIEA1612000
Pages:
31
Please address any questions about this title to publications@imf.org