Das, Gouranga (2010): Globalization, socio-institutional factors and North–South knowledge diffusion: Role of India and China as Southern growth progenitors. Forthcoming in: Technological Forecasting and Social Change , Vol. 79, (3. May 2012): pp. 620-637.
Download (398kB) | Preview
Nexus between income inequality and technology capture is explored in a global CGE model to explore the ricochet effect of technology transmission and its capture. In particular, the model shows that exogenous technology shock from developed North, vehicled via trade, transmits to developing Souths and induces productivity growth. This spillover capture, aided by human capital based adoptive capability, better governance and institution, causes increase in income and welfare and subsequently, leads to decline in income inequality. Dynamism of Southern Engines of Growth – India and China – caused them to emerge as ‘core’ South. Thus, triangular innovation diffusion between dynamic and peripheral South is also simulated to show how the backward or peripheral South could catch up via South–South Cooperation in a declining North–South trends in trade. This accrual of benefits could lead to sustained productivity growth and consequential relief of incidence of poverty in low-income countries.
|Item Type:||MPRA Paper|
|Original Title:||Globalization, socio-institutional factors and North–South knowledge diffusion: Role of India and China as Southern growth progenitors|
|English Title:||Globalization, socio-institutional factors and North–South knowledge diffusion: Role of India and China as Southern growth progenitors|
|Keywords:||Spillover; Human capital; Governance; Hub-and-spokes; Innovation and absorptive capacity; Gini; Poverty gap|
|Subjects:||O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development
C - Mathematical and Quantitative Methods > C6 - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C68 - Computable General Equilibrium Models
I - Health, Education, and Welfare > I3 - Welfare and Poverty
D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D58 - Computable and Other Applied General Equilibrium Models
|Depositing User:||Gouranga Gopal Das|
|Date Deposited:||09. Apr 2012 01:40|
|Last Modified:||14. Feb 2013 15:27|
Acemoglu, D. and Melissa Dell (2010). Productivity Differences Between and Within Countries. American Economic Journal: Macroeconomics, Vol 2 (1), pp.169-188.
Amiti, M., and S-J Wei (October 2004). "Fear of Service Outsourcing: Is it Justified?" IMF Working Paper, Research Department, WP/04/186. pp. 1-42.
Anand, Sudhir and Amartya Sen (1997). “Concepts of Human Development and Poverty: A Multidimensional Perspective.” In Poverty and Human Development, Human Development Papers. Human Development Report Office. The United Nations Development Programme, NY, USA.
Barro, R. J. and J. W. Lee (1996). "International Measures of Schooling Years and Schooling Quality." Papers and Proceedings of American Economic Review. 86 (2), pp. 218-223.
Bayoumi, T., D. T. Coe, and E. Helpman (1999). R&D Spillovers and Global Growth. Journal of International Economics 47 (2):399-428.
Berg, A., and A. Krueger (2003). "Trade, Growth, and Poverty—A Selective Survey," Annual World Bank Conference on Development Economics 2003, World Bank.
Bhagwati, J. (1993), Regionalism and Multilateralism: An Overview, J. de Melo and A. Panagariya (eds), New Dimensions in Regional Integration (NY: Cambridge University Press).
Bonham, Carl and Byron Gangnes (Oct 26, 2004). “Fragmentation and East Asia’s Information Technology Trade.” Working Paper 04-9, University of Hawaii.
Bourguignon, Francois (March 2004). "The Poverty-Growth-Inequality Triangle." Working Paper No. 125, Indian council for Research on International Economic Relations, New Delhi, India.
-------------(2003). "The Growth Elasticity of Poverty Reduction: Explaining Heterogeneity across Countries and Time Periods." In T. Eicher and S. Turnovsky, eds. Inequality and Growth: Theory and Policy Implications. Cambridge: MIT Press.
Bussolo, Maurizio and David O’Connor (2002). “Technology and Poverty: Mapping the Connections.” In Jorge Braga de Macedo and Tadao Chino (eds.), Technology and Poverty Reduction in Asia and the Pacific. Development Centre Seminars, OECD.
Cline, W. R. (2004). "Trade Policy and Global Poverty." Centre for Global Development, Institute for International Economics. Washington DC, USA.
Chen, S., and M. Ravallion. (2004). "How Have the World's Poorest Fared since the Early 1980s?" The World Bank Research Observer, 19 (2), World Bank, pp. 141-169.
Chen, Y-C. (2008). “Why do multinational corporations locate their advanced R&D centres in Beijing?” Journal of Development Studies, 44 (5). Pp. 622-44.
Coe, D., and E. Helpman (1995). International R&D Spillovers. European Economic Review 39 (5): 859-87.
Coe, D. T., E. Helpman, and A. W. Hoffmaister (1997). North-South R&D Spillovers. The Economic Journal 107 (January): 134-49.
Coe, D. T., E. Helpman and A. Hoffmaister (2008). International R&D Spillovers and Institutions. IMF Working Paper WP/08/104. Pp. 1-35.
Cohen, W. M., and D. A. Levinthal (1989). Innovation and Learning: The Two Faces of R&D. The Economic Journal 99(September): 569-596.
--and--(1990). Absorptive Capacity: A New Perspective on Learning and Innovation. Administrative Science Quarterly 35(1): 128-52.
Das, Gouranga G. (2002). “Trade, Technology and Human Capital: Stylised Facts and Quantitative Evidence”The World Economy, Volume 25, Issue 2, Blackwell Publishers, Oxford (U.K.) & Boston (U.S.A.).
Das, Gouranga G. (March 2008). “Does Trade and Technology transmission facilitate convergence? The tole of technology adoption in reducing the inequality of nations”Journal of Economic Policy Reform, Volume 11, Issue 1, pp.67-92.
Das, Gouranga G. (2010). “How to Reap the Induced Technological Bonus? A Mechanism and Illustrative Implementation. Modern Economy (Scientific Research), Vol 1 (2), pp. 80-88.
Dasgupta, P (2009). ‘A Matter of Trust: Social Capital and Economic Development.’ Annual Bank Conference on Development Economics (ABCDE), World Bank, Seoul, June 2009. pp. 1-47.
De Ferranti, D., G. E. Perry, I. S. Gill, J. L. Guasch, W. F. Maloney, C. S. Paramo, and N. Schady (2003b). Closing the Gap in Education and Technology. The World Bank, Washington.
Deaton, Angus., and Jean Dreze (Sept 7, 2002). Poverty and Inequality in India: A Re-examination. Economic and Political Weekly pp. 3729-3748
Deininger, K., and L. Squire (1996). "A New Dataset measuring Income Inequality," The World Bank Economic Review 10 (3), pp. 565-591.
Dimaranan, B., and R. A. A. Mc Dougall (eds.) (2003). Global Trade, Assistance, and Protection: The GTAP 5 Database, Center for Global Trade Analysis, Purdue University, USA.
Dollar, David and A. Kraay (2002). "Growth is Good for the Poor." Journal of Economic Growth, 7, pp. 195-225.
Dyke, Nancy Berg (2001) in Aspen Institute Conference Report on International Peace, Security and Prosperity (2001), “Attacking Global Poverty: Technology for Economic and Social Uplift.” August 18-20, 2000, Aspen, Colorado.
Eaton, J. and S. Kortum (1996). Trade in Ideas: Patenting and Productivity in the OECD. Journal of International Economics 40: 251-278.
Fosu, A. (January 2011). Growth, Inequality, and Poverty Reduction in Developing Countries: Recent Global Evidence. UNU-WIDER Working Paper 2011/01.
Francois, J. F. and C. R. Shiells (1994), “ AGE Models of North American Free Trade’ in J. F. Francois and C. R. Shiells, (eds) Modeling Trade Policy, Applied General Equilibrium Assessments of North American Free Trade, (Cambridge: Cambridge University Press).
Frankel, J. A., and D. Romer. (1999). "Does Trade Cause Growth?" American Economic Review (June), pp. 379-399.
Fugazza, Marco., and Frederic Robert-Nicoud (June, 2006). “Can South-South Trade Liberalization Stimulate North-South Trade?” CEPR Discussion Paper No. 5699. Centre for Economic Policy Research, London: U.K.
Gordon, James and Poonam Gupta (2004). Understanding India’s Services Revolution. IMF Working Paper, WP/04/171.
Groot, H. L. F. de., G-J Linders, P. Rietvelda, and U. Subramanian (2004). The Institutional Determinants of Bilateral Trade Patterns. Kyklos 57 (February):103-124.
Hanushek, Eric A., and L. Woesmann (2008). Journal of Economic Literature, 46 (3), pp. 607-668.
Harrison, W. J. and K. R. Pearson (1996) “Computing Solutions for Large General Equilibrium Models Using GEMPACK.” Computational Economics, 9: pp. 83-127.
Helpman, E. (2004). "The Mystery of Economic Growth." Harvard University Press.
Hertel, T. W., ed. (1997). Global Trade Analysis: Modeling and Applications. Cambridge, MA, Cambridge University Press.
Hertel, T. W., and J. J. Reimer (November 2004). "Predicting the Poverty Impact of Trade Reform." World Bank Policy Research Working Paper 3444, World Bank.
Hsieh Chang-Tai and Peter J. Klenow (2010). Development Accounting. American Economic Journal: Macroeconomics, Vol 2 (1), pp. 207—223.
International Monetary Fund (January 12, 2011). New Growth Drivers for Low-income Countries: The Role of BRICs. Prepared by the Strategy, Policy, and Review Department. Pp. 1-63.
Jones, C. I. and Paul M. Romer (2010). The New Kaldor Facts: Ideas, Institutions, Population, and Human Capital. American Economic Journal: Macroeconomics, Vol 2 (1), pp. 224—245.
Jones, R. W. (2000). Globalization and the Theory of Input Trade. MIT Press.
Kaufmann, D. A. Kraay, and M. Mastruzzi (2003). Governance Matters III: Governance Indicators for 1996–2002. World Bank Policy Research Working Paper 3106. Dataset at: www.worldbank.org/wbi/governance/govdata2002/.
Kaufmann, D (2004). Governance Redux: The Empirical Challenge. Chapter in Global Competitiveness Report 2003-2004, World Economic Forum.
Keller, W. (1997). Trade and the Transmission of Technology. NBER Working Paper, 6113, Cambridge, MA, July, 1-33 + Appendix.
_____ (1998). Are International R&D Spillovers Trade Related? Analyzing Spillovers among Randomly matched trade partners. European Economic Review 42:1469-81.
_____ (2001). The Geography and Channels of Diffusion at the World’s Technology Frontier. NBER Working Paper, 8150, Cambridge, MA, 1-28 + Appendix.
_____ (2004). .International Technology Diffusion. Journal of Economic Literature Vol. XLII (September 2004):752-782. Kobrin, Stephen J. (1999). Development after Industrialization: Poor Countries in an Electronically Integrated Global Economy. In 'The Globalization of Multinational Enterprise Activity and Economic Development' by Neil Hood and Stephen Young (Eds.). London: Macmillan, 1999.
Kosempel, Stephen (November 2007). "Interaction between knowledge and technology: a contribution to the theory of development." Canadian Journal of Economics, 40 (4), pp. 1237-1260.
Lucas, R. E. Jr. (2009a). Trade and the diffusion of the Industrial Revolution. American Economic Journal: Macroeconomics. Vol 1(1). pp.1-25.
Lucas, R. E. Jr. (2009b). Ideas and Growth. Economica. Vol 76 (1). Pp.1-19.
McCulloch, N., L. Alan Winters, and X. Cirera (2001). "Trade Liberalization and Poverty: A Handbook." CEPR and Department for International Development., U.K.
Meier, G. M. and J. E. Stiglitz (2002). Frontiers of Development Economics: the future in perspective. World Bank, Oxford University Press.
Nelson, R.R. (1990). On Technological Capabilities and their Acquisition. In R.E. Evenson and G. Ranis (eds.), Science and Technology: Lessons for Development Policy, Westview Press.
Onyeiwu, Steve (March 2011). Does lack of Innovation and Absorptive Capacity Retard Economic Growth in Africa? UNU-WIDER Working Paper No. 2011/19. ISSN 1798-7237.
OECD (2000). Science, Technology and Industry Scoreboard of Indicators, Paris.
OECD (2010). Perspectives on Global Development 2010: Shifting Wealth, Paris.
Pack, H., and L. E. Westphal (1986). "Industrial Strategy and Technological Change: Theory versus Reality." Journal of Development Economics, 87, pp. 87-128.
Paus, E. (2005). Foreign Investment, Development and Globalization. New York: Palgrave Macmillan.
Ravallion, M. (1994). Poverty Comparisons. Harwood Academic Books.
------------(1995). "Growth and Poverty: Evidence for Developing Countries in the 1980s." Economics Letters, 48, pp. 411-417.
------------(2001). "Growth, Inequality and Poverty: Looking Beyond Averages." World Development. 29(11), pp. 1803-1815.
------------(2004). "Looking Beyond Averages in the Trade and Poverty Debate." World Bank Policy Research Working Paper 3461. Washington D.C.: World Bank.
Robinson, S., and H. Lofgren (2005). " Macro Models and Poverty Analysis: Theoretical Tensions and Empirical Practice. Development Policy Review, 23 (3), pp. 267-283.
Sachs et al. (2004). “Ending Africa’s Poverty Trap.” Brookings Institution.
Santos-Paulino, Amelia U. and Guanghua Wan (2010a). Southern Engines of Global Growth. Oxford University Press.
Santos-Paulino, Amelia U. and Guanghua Wan (2010b). The Rise of China and India: Impacts, Prospects and Implications. Palgrave, Macmillan.
Sen, A. (1973). "On Economic Inequality", Oxford and Clarendon Press.
Sen, A. (1993). "Capability and Well-being", in The Quality of Life, (eds.) Martha Nussbaum and A. Sen. Oxford: Clarendon Press.
Sen, A. (1995). " Inequality Reexamined", Oxford University Press.
Sen, A. (2004). "Development as Freedom", Oxford University Press.
The Economist, December 18, 2004. London, U.K.
UNDP. Human Development Report 2003: Millenium Development Goals: A Compact among Nations to end Human Poverty. New York, Oxford University Press.
---------- Human Development Report 2001: New York, Oxford University Press.
United Nations (October 2010). Millennium Development Goal 8, The Global Partnership for Development at a Critical Juncture. MDG Gap Task Force Report 2010.
Winters, A. L., N. McCulloch, and A. McKay (March 2004). "Trade Liberalization and Poverty: The Evidence So Far." Journal of Economic Literature, Volume XLII, Number 1, pp. 72—115.
World Bank (1998/1999). Knowledge for Development. World Development Report 1998/9, New York, Oxford University Press.
World Bank (2000). Attacking Poverty. World Development Report 2000/2001, New York, Oxford University Press.
World Bank (2004a). Global Economic Prospects 2004: Realizing the Development Promise of the Doha Agenda. Washington D.C.: World Bank.
World Bank (2004b). World Development Indicators. World Bank.
World Bank (2005). A Better Investment Climate for Everyone. World Development Report 2005, New York, Oxford University Press.
World Bank (2007a). Unleashing India’s Innovation: towards Sustainable and Inclusive Growth. The World Bank, Washington DC.
World Bank (2007b). China’s Information Revolution: Managing the Economic and Social Transformation. The World Bank, Washington DC.
World Bank (2008). Agriculture for Development. World Development Report 2008, New York, Oxford University Press.
World Bank (2010). Innovation Policy: A Guide for Developing Countries. The World Bank, Washington DC.
Yitzhaki, Shlomo (2002). "Do we need a Separate Poverty Measurement?" European Journal of Political Economy, 18, pp. 61-85.