Does trade and technology transmission facilitate convergence? The role of technology adoption in reducing the inequality of nations
- Authors
- Das, Gouranga Gopal
- Issue Date
- Mar-2008
- Publisher
- Routledge
- Keywords
- inequality; spillover; governance; institution; Gini coefficient; skill cohorts; growth
- Citation
- Journal of Economic Policy Reform, v.11, no.1, pp.67 - 92
- Indexed
- SCIE
SCOPUS
- Journal Title
- Journal of Economic Policy Reform
- Volume
- 11
- Number
- 1
- Start Page
- 67
- End Page
- 92
- URI
- https://scholarworks.bwise.kr/erica/handle/2021.sw.erica/43107
- DOI
- 10.1080/17487870802134942
- ISSN
- 1748-7870
- Abstract
- Based on stylized evidence showing variation of the Gini coefficients of income inequality across skill cohorts with the rapid rise in trade in technology-intensive goods, the transmission effects of technology diffusion and income inequality are explored in a global Computable General Equilibrium (CGE) framework. An exogenous technology shock transmitted via trade from the United States induces productivity growth in developing regions. This spillover in technology - aided by absorptive capability, better governance and institutions, technological symmetry and social acceptance - causes income to increase and income inequality to decline. The transmission of technology facilitates convergence of inequality between nations.
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