Microeconomics of Technology Adoption

Posted: 21 Jan 2010

See all articles by Mark R. Rosenzweig

Mark R. Rosenzweig

Yale University - Economic Growth Center; Yale University - Cowles Foundation

Andrew D. Foster

Brown University - Department of Economics; Brown University - Watson Institute for International and Public Affairs

Multiple version iconThere are 2 versions of this paper

Date Written: January 21, 2010

Abstract

There is an emerging consensus among macro-economists that differences in technology across countries account for the major differences in per-capita GDP and the wages of workers with similar skills across countries. Accounting for differences in technology levels across countries thus can go a long way towards understanding global inequality. One mechanism by which poorer countries can catch up with richer countries is through technological diffusion, the adoption by low-income countries of the advanced technologies produced in high-income countries. In this survey, we examine recent micro studies that focus on understanding the adoption process. If technological diffusion is a major channel by which poor countries can develop, it must be the case that technology adoption is incomplete or the inputs associated with the technologies are under-utilized in poor, or slow-growing economies. Thus, obtaining a better understanding of the constraints on adoption is useful in understanding a major component of growth.

Keywords: technology adoption review

JEL Classification: O10, O13, O33

Suggested Citation

Rosenzweig, Mark Richard and Foster, Andrew D., Microeconomics of Technology Adoption (January 21, 2010). Yale University Economic Growth Center Discussion Paper No. 984, Yale Economics Department Working Paper No. 78, Available at SSRN: https://ssrn.com/abstract=1540038

Mark Richard Rosenzweig (Contact Author)

Yale University - Economic Growth Center ( email )

Box 208269
New Haven, CT 06520-8269
United States
203-432-3620 (Phone)

Yale University - Cowles Foundation

Box 208281
New Haven, CT 06520-8281
United States

Andrew D. Foster

Brown University - Department of Economics ( email )

64 Waterman Street
Providence, RI 02912
United States
401-863-2537 (Phone)

Brown University - Watson Institute for International and Public Affairs ( email )

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Box 1970
Providence, RI 02912-1970
United States

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