The Impact of Technology Transfer on Employment and Income Distribution in Developing Countries: A Survey of Theoretical Models and Empirical Studies
42 Pages Posted: 11 Jan 2007
Date Written: September, 2004
The aim of this paper is to offer an updated survey of recent theoretical models and empirical studies analysing the impact of technology transfer on both employment and income distribution within developing countries. The transfer of technology from developed to developing countries depends on trade liberalization and internationalization of production through various channels. A critical discussion compares the positive implications of technology transfers (such as positive spillovers, technological catching-up, growing complementarities with domestic firms) with negative implications (displacement of workers, negative welfare implications, competitive effects with domestic firms).
Moreover the nature of transferred technologies (labour-saving and/or skill-bias, embodied or not embodied in capital), together with the different institutional 'absorptive capacities' and sectoral specializations of both middle-income and low income developing countries, are considered.
Keywords: technology, employment, income distribution, developing countries, theoretical models, empirical
JEL Classification: J31, O14
Suggested Citation: Suggested Citation