Emulative Development through Trade Expansions: East Asian Evidence
Van H. Pham
Baylor University - Department of Economics
Henry Wan Jr.
Cornell University - Department of Economics
INTERNATIONAL TRADE POLICY AND THE PACIFIC RIM, John Piggott & Alan Woodland, eds., Macmillan Press, 1999
We identify East Asian growth as an 'emulative process'. Distilling salient facts from a set of particular cases, we construct an example to capture the essence of such technology transfer, where the government of a developing economy may provide adequate incentive for the firms of a developed economy to invest. The presence of the latter allows agents in the developing economy to acquire enough information to launch their own business but not enough to outcompete the investor. The formulation is information-theoretic and in the form of a multi-stage game. We relate our findings to recent views on the cause and future of East Asian growth.
Keywords: Development, Foreign investment, Information, Technological diffusion, Technology transfer, Trade
JEL Classification: D83, F13, F21, O30, O53Accepted Paper Series
Date posted: March 5, 2009 ; Last revised: August 27, 2012
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