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Absorption Capacity, Structural Similarity and Embodied Technology Spillovers in a 'Macro' Model: An Implementation within the GTAP Framework

CoPS and Impact Project Working Paper No. IP-77

59 Pages Posted: 1 Sep 2001  

Gouranga Gopal Das

Hanyang University Erica Campus

Alan A. Powell

Monash University - Centre of Policy Studies and Impact Project

Date Written: December 2000

Abstract

In this paper, all technology transfers are embodied in trade flows within a three-region, one-traded-commodity version of the GTAP model. Exogenous Hicks-Neutral technical progress in one region can have uneven impacts on productivity elsewhere. Why? Destination regions' ability to harness new technology depends on their absorptive capacity and the structural congruence of the source and destination. Together with trade volume, these two factors determine the recipient's spillover coefficient (which measures its success in capturing foreign technology). Armington competition between the outputs of the three economies and shifts in their terms of trade loom large in the general equilibrium adjustment.

Keywords: Absorption Capacity, Capture Parameter, Trade, Technology Spillover, and CGE

JEL Classification: D58, F1, O3

Suggested Citation

Das, Gouranga Gopal and Powell, Alan A., Absorption Capacity, Structural Similarity and Embodied Technology Spillovers in a 'Macro' Model: An Implementation within the GTAP Framework (December 2000). CoPS and Impact Project Working Paper No. IP-77. Available at SSRN: https://ssrn.com/abstract=281529 or http://dx.doi.org/10.2139/ssrn.281529

Gouranga Gopal Das

Hanyang University Erica Campus ( email )

1271 Sa-1 dong
Ansan
Kyunggi-do, 425-791
Korea

Alan A. Powell (Contact Author)

Monash University - Centre of Policy Studies and Impact Project ( email )

& Dept. of Econometrics & Business Statistics
11th Floor Menzies Bldg, PO Box 11E
Clayton, Victoria 3800
Australia
61 3 9905 5485 (Phone)
61 3 9905 2426 (Fax)

HOME PAGE: http://www.monash.edu.au/policy/aappub.htm

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