Modeling Sectoral and Welfare Impacts of Information Technology Spillover: A Tale of Two Souths

Abstract

The study develops a North-South model of trade-mediated technology diffusion that proves that (i) higher constellation of absorptive capacity, governance, and structural congruity facilitates South`s effective assimilation of Northern technology; (ii) lower capture-parameter hinders adoption in South; (iii) technology-induced E-commerce fosters trade and international commerce via E-business. The study has policy implications for human resource development, technology transfer and international business.