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GTAP Resource #2827

"Does Trade and Technology Transmission Facilitate Convergence? Role of Technology Adoption in Reducing the Inequality of Nations "
by Das, Gouranga


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.

JEL CODES: D3, I3, O1
KEY WORDS: Inequality, Spillover, Governance, Institution, Gini Coefficient, Skill Cohorts, Growth


Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Published
By/In: Journal of Economic Policy Reform
Date: 2008
Version: Vol 11 (1)
Created: Das, G. (6/26/2008)
Updated: Batta, G. (7/7/2008)
Visits: 1,489
- Economic growth
- Economic development
- Economic analysis of poverty
- Technological change


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