Technological Spillover, Growth Convergence And Technical Progress: Does technology flow from rich to poor economies?
DOI:
https://doi.org/10.14738/abr.84.8097Keywords:
Productivity, Economic growth, spillovers, technological transfer, technical progressAbstract
This study examines Technology spillover from rich to poor countries, the study used a model that, at the aggregate level, is similar to the one sector neoclassical growth model. The model was estimated using data on technical progress, Average Product Per-Worker, Capital Stock and Technology Intensive Goods in 25 countries which consist of rich and poor countries over the last decade. A dynamic panel model is formulated and estimated Using Generalized method of moments by Arelano and Bond; and the implications of the estimates were evaluated for aggregate total factor productivity and economic growth. The results reveal that, on average, technology have contributed more to economic growth in high income economies and on the contrary technology have made little or no contribution in low income countries. Consequently, there is substantial variation across technologies and economies
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Coe C., Riccardo L. and Anna M., (2015). Spatial knowledge spillovers and regional productivity growth in Europe, Univerisity of Bari and CERIS-CNR, 201-21.
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Mary O., Michela V., (2009). R&D, knowledge spillovers and company productivity performance. Research Policy, 38(1), 35-44.
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Mavannoor P., (2009). International Trade, R&D spillovers and productivity: Evidence from Indian Manufacturing Industry, 2008, Journal of Development Studies, 1251.
Melchior, A. and K. Telle (2001). ‘Global Income Distribution 1965-98: Convergence and Marginalisation’, Forum for Development Studies,28, 1, 75-98.
Parente, P. B. and Prescott, M. (1994). ‘Geography, Technology and Convergence’, Structural Change and Economic Dynamics, 12, 247-276.
Posner, M. V. (1961). ‘International Trade and Technical Change’, Oxford Economic Papers, 13, 323-41.
Prescott, L. (1998). ‘Convergence Big Time’, Journal of Economic Perspectives, 11, 3-17.
Rivera-Batiz, L. A. and P. M. Romer (1991). ‘Economic Integration and Endogenous Growth’, Quarterly Journal of Economics,106, 531-56.
Romer, P. M. (1990). ‘Endogenous Technological Change’, Journal of Political Economy, 98, 71-102.
Solow, R. (1956). ‘A Contribution to the Theory of Economic Growth’, Quarterly Journal of Economics, 70, 65-94.
Verspagen, J. (1991). ‘Growth and Interdependence’, Quarterly Journal of Economics, 112, 57-84
Vernon, R. (1966). ‘International Investment and International Trade in the Product Cycle’, Quarterly Journal of Economics, LXXX, 190-207.
Walz, U., (2015).Innovation, Foreign Direct Investment and Growth. Economica 64: 63-79.
Wang, J.-Y., (2010). Growth, Technology Transfer, and the Long-run Theory of International Capital Movements. Journal of International Economics 29 (3-4): 255-71.
Xu, B. and E. Chiang, (2016). Trade, patents and international technology diffusion. Journal of International Trade and Economic Development 14 (1): 115-135.
Young, A. (1991). ‘I Just Ran Two Million Regressions’, American Economic Review, Papers and Proceedings, 87, 178-83.
Zhang J., and He Y., (2014). Theoretical and Empirical Study on the Impact of Trade and Foreign Direct Investment on Technological Spillovers. Linnaeus University, 218.
Abramovitz, M. (1994). ‘Catch-up and Convergence in the Postwar Growth Boom and After’ in Journal of International Economics, 13, 105-162.
Aghion, P. and P. Howitt (1992). ‘A Model of Growth through Creative Destruction’, Econometrica, 60, 323-51.
Aghion, P. and P. Howitt (1998). Endogenous Growth Theory, The MIT Press, Cambridge, Massachusetts.
Aluko, O. O. and J. A. Adolphus (2019). ‘The role of Technology innovation in public health
Management’. Being paper presented at the 2nd International Conference on
Economics, Management and Technology (IEMT 2019) held at Hochschule Neu - Ulm,
Nov. 19th – 21st, University of applied science (HNU), Neu - Ulm, Germany
Barro, R. J. and X. Sala-I-Martin (1995). Economic Growth, McGraw-Hill, New York.
Basu, P. and Weil, I. (1998). Endogenous Growth Theory, The MIT Press, Cambridge, Massachusetts.
Caselli, D. T. and Helpman, Coleman (2006). ‘International R&D spillovers’, European Economic Review, 39, 859-87.
Chandra, A. (2006). ‘North South R&D Spillovers’, Economic Journal, 107, 134-149.
Ciruelos L., and Wang S., (2015). International R&D spillovers and manufacturing productivity: A panel data analysis, Structural Change and Economic Dynamics, vol19, issue2, 152-72.
Coe C., Riccardo L. and Anna M., (2015). Spatial knowledge spillovers and regional productivity growth in Europe, Univerisity of Bari and CERIS-CNR, 201-21.
Diago, D. and Bart, H. (2008). ‘A Technology Gap to Why Growth Rates Differ’, Research Policy, 16, 87-99.
Evenson, G. and Englander, T. (2014). Foreign Direct Investment and Spillovers Through Workers’ Mobility, Journal of International Economics, 53, 205-222.
Fagerberg, J. (1988). Technology, Growth and Trade - Schumpeterian Perspectives D- phil thesis, Sussex.
Gerschenkron, K. (2002). Innovation and Growth in the Global Economy, The MIT Press, Cambridge, Massachusetts.
Howitt, P. (2000). ‘Endogenous Growth and Cross-Country Income Differences’, American Economic Review, 90, 4, 829-46.
King and Levine, W. (1994). ‘Geographic Localization of International Technology Diffusion’, American Economic Review, 92 (1), 120-42.
Klette, T. J. and Z. Griliches (1998). Empirical Patterns of Firm Growth and R&D Investments: A Quality Ladder Model Interpretation Memorandum from Department of Economics, University of Oslo, No 23.
Krugman, P. (1979). ‘A Model of Innovation, Technology Transfer and the World Distribution of Income’, Journal of Political Economy, 87, 2, 253-66.
Krugman, P. (1986). ‘A ‘Technology Gap’ Model of International Trade in Jungenfelt, K. and D. Hauge (ed.) Structural Adjustment in Advanced Economies, Macmillan, NewYork, 35-49.
Liu, (2013). Foreign direct investment and technology spillovers: Theory and evidence, Journal of Development Economics. 176-93.
Lucas, R. E. Jr. (1988). ‘On the Mechanics of Economic Development’, Journal of Monetary Economics, 22, 3-42.
Mankiw, N. G., D. Romer and D. N. Weil (1992). ‘A contribution to the empirics of economic growth’, Quarterly Journal of Economics, 107, 2, 407-37.
Mary O., Michela V., (2009). R&D, knowledge spillovers and company productivity performance. Research Policy, 38(1), 35-44.
Maurseth, P. B. (2002). Geography and growth – some empirical evidence, NUPI Working Paper 623, Oslo.
Mavannoor P., (2009). International Trade, R&D spillovers and productivity: Evidence from Indian Manufacturing Industry, 2008, Journal of Development Studies, 1251.
Melchior, A. and K. Telle (2001). ‘Global Income Distribution 1965-98: Convergence and Marginalisation’, Forum for Development Studies,28, 1, 75-98.
Parente, P. B. and Prescott, M. (1994). ‘Geography, Technology and Convergence’, Structural Change and Economic Dynamics, 12, 247-276.
Posner, M. V. (1961). ‘International Trade and Technical Change’, Oxford Economic Papers, 13, 323-41.
Prescott, L. (1998). ‘Convergence Big Time’, Journal of Economic Perspectives, 11, 3-17.
Rivera-Batiz, L. A. and P. M. Romer (1991). ‘Economic Integration and Endogenous Growth’, Quarterly Journal of Economics,106, 531-56.
Romer, P. M. (1990). ‘Endogenous Technological Change’, Journal of Political Economy, 98, 71-102.
Solow, R. (1956). ‘A Contribution to the Theory of Economic Growth’, Quarterly Journal of Economics, 70, 65-94.
Verspagen, J. (1991). ‘Growth and Interdependence’, Quarterly Journal of Economics, 112, 57-84
Vernon, R. (1966). ‘International Investment and International Trade in the Product Cycle’, Quarterly Journal of Economics, LXXX, 190-207.
Walz, U., (2015).Innovation, Foreign Direct Investment and Growth. Economica 64: 63-79.
Wang, J.-Y., (2010). Growth, Technology Transfer, and the Long-run Theory of International Capital Movements. Journal of International Economics 29 (3-4): 255-71.
Xu, B. and E. Chiang, (2016). Trade, patents and international technology diffusion. Journal of International Trade and Economic Development 14 (1): 115-135.
Young, A. (1991). ‘I Just Ran Two Million Regressions’, American Economic Review, Papers and Proceedings, 87, 178-83.
Zhang J., and He Y., (2014). Theoretical and Empirical Study on the Impact of Trade and Foreign Direct Investment on Technological Spillovers. Linnaeus University, 218.
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Published
2020-05-03
How to Cite
Aluko, O. O. ., & Sani, B. S. . (2020). Technological Spillover, Growth Convergence And Technical Progress: Does technology flow from rich to poor economies?. Archives of Business Research, 8(4), 132–145. https://doi.org/10.14738/abr.84.8097
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