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Technological Adaptation, Trade, and Growth
Author:
Mr. Alberto Chong null

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Ms. Luisa Zanforlin
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Series:
IMF Working Papers
Volume/Issue:
Volume 2000: Issue 161
Language:
English
Publication Date:
01 Oct 2000
DOI:
https://doi.org/10.5089/9781451857801.001
ISBN:
9781451857801
ISSN:
1018-5941
Pages:
31
Keywords:
WP; rate of growth; comparative advantage; GMM system estimator; production function; Growth; Assimilation; Technology; Exports; Imitation; Dynamic Panel Data; input-output coefficient; high-tech goods; parent export; export category; Human capital; Estimation techniques; Unskilled labor; East Asia
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund