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Technological Adaptation, Trade, and Growth [electronic resource] / Alberto Chong.

By: Chong, Alberto.
Contributor(s): Zanforlin, Luisa.
Material type: materialTypeLabelBookSeries: IMF Working Papers; Working Paper: No. 00/161Publisher: Washington, D.C. : International Monetary Fund, 2000Description: 1 online resource (31 p.).ISBN: 1451857802 :.ISSN: 1018-5941.Subject(s): Assimilation | Correlation | Dynamic Panel Data | Growth | Imitation | Intermediate Inputs | Cameroon | Central African Republic | Congo, Democratic Republic of the | Hong Kong Special Administrative Region of China | United StatesAdditional physical formats: Print Version:: Technological Adaptation, Trade, and GrowthOnline resources: IMF e-Library | IMF Book Store Abstract: 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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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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