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GTAP Resources: Resource Display

GTAP Resource #939

"Medium- and Long-run Consequences for Australia of an APEC Free-Trade Area: CGE Analyses Using the GTAP and Monash Models"
by Das, Gouranga and Alan Powell


Abstract
In this paper, all technology transfers are embodied in trade flows within a three-region, one-traded-commodity version of the GTAP model. Exogenous Hicks-Neutral technical progress in one region can have uneven impacts on productivity elsewhere. Why? Destination regions’ ability to harness new technology depends on their absorptive capacity and the structural congruence of the source and destination. Together with trade volume, these two factors determine the recipient’s spillover coefficient (which measures its success in capturing foreign technology). Armington competition between the outputs of the three economies and shifts in their terms of trade loom large in the general equilibrium adjustment. This has implications for public policy in the context of human capital formation and the role of education, especially for the developing economies like the East-Asian countries.

JEL Classification: D58, F1, O3.
Key Words: Absorption Capacity, Capture Parameter, Trade, Technology Spillover, and CGE.


Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Published
By/In: The Korean Journal of Policy Studies
Date: 2001
Version: XVI (1), August
Created: Das, G. (2/19/2002)
Updated: Batta, G. (9/4/2007)
Visits: 1,783
- Technological change


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