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Technology Adoption and Multiple Growth Paths: An Intertemporal General Equilibrium Analysis of the Catch-up (2004)
| Venue: | Process in Thailand. Review of World Economics / Weltwirtschaftliches Archiv 140 |
| Citations: | 15 - 9 self |
BibTeX
@INPROCEEDINGS{Stokke04technologyadoption,
author = {Hildegunn E. Stokke},
title = {Technology Adoption and Multiple Growth Paths: An Intertemporal General Equilibrium Analysis of the Catch-up},
booktitle = {Process in Thailand. Review of World Economics / Weltwirtschaftliches Archiv 140},
year = {2004},
pages = {80--109}
}
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Abstract
Abstract: As opposedto the Veblen-Gerschenkron catching-up hypothesis, the recent literature allows for technological divergence in backward economies. We extend a nonlinear adoption function to include openness and interact with capital accumulation in an intertemporal general equilibrium framework. The threshold gap necessary to catch up is endogenously determined by the economy's absorptive capacity. The model generates multiple transition growth paths depending on whether technological catch-up is achieved, and due to the endogeneity ofthe threshold gap, endogenous switchingbetween development paths might be observed. Our simulations of the Thailand experience show how lack of investment in education and protectionism generate loss oftransition growth and technological divergence. The paper highlights the role of absorptive capacity, and especially its importance for economies on the balancebetween low growth and high growth paths. JEL no. O41,053
Keyphrases
intertemporal general equilibrium analysis multiple growth path technology adoption technological divergence threshold gap absorptive capacity recent literature multiple transition growth path loss oftransition growth high growth path balancebetween low growth veblen-gerschenkron catching-up hypothesis thailand experience show nonlinear adoption function intertemporal general equilibrium framework capital accumulation technological catch-up backward economy endogenous switchingbetween development path
