Abstract

http://ssrn.com/abstract=1945981
 
 

References (22)



 


 



Why Doesn't Technology Flow from Rich to Poor Countries?


Harold L. Cole


University of Pennsylvania - Department of Economics; National Bureau of Economic Research (NBER)

Jeremy Greenwood


University of Pennsylvania - Department of Economics; National Bureau of Economic Research (NBER)

Juan M. Sanchez


Federal Reserve Bank of St. Louis; Federal Reserve Bank of St. Louis

September 1, 2012


Abstract:     
What determines the technology that a country adopts? While there could be many factors, the efficiency of the country's financial system may play a significant role. To address this question, a dynamic contract model is embedded into a general equilibrium setting with competitive intermediation. The ability of an intermediary to monitor and control the cash flows of a firm plays an important role in a firm's decision to adopt a technology. Can such a theory help to explain the differences in total factor productivity and establishment-size distributions across India, Mexico, and the U.S.? Applied analysis suggests that answer is yes.

This paper was previously titled "Underwriting Ventures: Trust but Verify."

Number of Pages in PDF File: 64

Keywords: Costly cash-flow control, costly state verification, dynamic contract theory, economic development; establishment-size distributions, financial intermediation, India, Mexico and the U.S., monitoring, productivity, technology adoption, underwriting, ventures

JEL Classification: D92, G24, O11

working papers series





Download This Paper

Date posted: October 20, 2011 ; Last revised: September 15, 2014

Suggested Citation

Cole, Harold L. and Greenwood, Jeremy and Sanchez, Juan M., Why Doesn't Technology Flow from Rich to Poor Countries? (September 1, 2012). Available at SSRN: http://ssrn.com/abstract=1945981 or http://dx.doi.org/10.2139/ssrn.1945981

Contact Information

Harold L. Cole (Contact Author)
University of Pennsylvania - Department of Economics ( email )
3718 Locust Walk
436 McNeil
Philadelphia, PA 19104
United States
215-898-7788 (Phone)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Jeremy Greenwood
University of Pennsylvania - Department of Economics ( email )
3718 Locust Walk
Philadelphia, PA 19104
United States
215-898-1505 (Phone)
HOME PAGE: http://jeremygreenwood.net
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Juan M. Sanchez
Federal Reserve Bank of St. Louis ( email )
One Federal Reserve Bank Plaza St. Louis, MO 63102
St Louis, VA Mo 63131
United States
Federal Reserve Bank of St. Louis ( email )
P.O. Box 442
St. Louis, MO 63166-0442
United States
Feedback to SSRN


Paper statistics
Abstract Views: 1,122
Downloads: 333
Download Rank: 51,223
References:  22

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 0.297 seconds