Technology Adoption and the Investment Climate: Firm-Level Evidence for Eastern Europe and Central Asia

Posted: 22 Feb 2010  

Paulo Guilherme Correa

World Bank

Ana M. Fernandes

World Bank - International Trade Division; World Bank

Chris J. Uregian

World Bank

Multiple version iconThere are 2 versions of this paper

Date Written: 2010

Abstract

Survey data for 7,000 firms in 28 countries in Eastern Europe and Central Asia are used to examine the correlates of technology adoption proxied by ISO certification and web use. Complementary inputs such as skilled labor, managerial capacity, research and development, finance, and good infrastructure are shown to be important correlates of technology adoption. The link between market incentives and technology adoption is more nuanced. While stronger consumer pressure is significantly associated with technology adoption, competitor pressure is not, suggesting that in developing economies where many input markets are imperfect, it is primarily firms with rents that are able to adopt new technology. Foreign-owned firms exhibit significantly better technology adoption outcomes, but privatized firms with domestic owners do not.

Keywords: F1, F2, O3

Suggested Citation

Correa, Paulo Guilherme and Fernandes, Ana M. and Uregian, Chris J., Technology Adoption and the Investment Climate: Firm-Level Evidence for Eastern Europe and Central Asia (2010). The World Bank Economic Review, Vol. 24, Issue 1, pp. 121-147, 2010. Available at SSRN: https://ssrn.com/abstract=1556152 or http://dx.doi.org/lhp021

Paulo Guilherme Correa (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Ana Margarida Fernandes

World Bank - International Trade Division

1818 H Street, N.W.
Washington, DC 20433
United States

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/afernandes

Chris J. Uregian

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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