User menu

Accès à distance ? S'identifier sur le proxy UCLouvain

The Development Problem under Embodiment

Primary tabs

Boucekkine, Raouf [UCL] Martinez, Blanca [] Saglam, Cagri []

This paper studies technology adoption in an optimal growth model with embodied technical change. The economy consists of the final good sector, the capital sector, and the technology sector which role is the imitation of exogenous innovations. Scarce labor resources are allocated to the technology and final good sectors. The final good is allocated to consumption and to the capital sector. The authors analytically characterize the long run optimal allocations. Using a calibrated version of the model, they find that an acceleration in the rate of embodied technical change should not be responded by an immediate and strong adoption effort. Instead, adoption labor should decrease in the short run, and the optimal technological gap is shown to increase either in the short or in the long run. The state of the institutions and policies around the technology sector is key in the design of the optimal adoption timing.

Document type Article de périodique (Journal article)
Publication date 2006
Language Anglais
Journal information "Review of Development Economics : an essential resource for any development economist" - Vol. 10, no. 1, p. 42-58 (Janvier 2006)
Peer reviewed yes
Publisher Wiley-Blackwell Publishing Ltd. (Oxford, United Kingdom)
issn 1363-6669
e-issn 1467-9361
Publication status Publié
Affiliations UCL - EUEN/CORE - Center for operations research and econometrics
Universidad de Alicante
Bilkent University
UCL - ESPO/ECON - Département des sciences économiques
Links
  1. Blanchard Olivier J., Econometrica, 48, 1305 (1980)
  2. Boucekkine Raouf, An alternative methodology for solving nonlinear forward-looking models, 10.1016/0165-1889(94)00800-w
  3. Boucekkine Raouf, del Rio Fernando, Licandro Omar, Embodied Technological Change, Learning-by-doing and the Productivity Slowdown*, 10.1111/1467-9442.00006
  4. Elias Dinopulos, and Paul S Segerstrom , "A Theory of Globalization ,"Manuscript. Stockholm School of Economics (2003 ).
  5. Gordon Robert J., Journal of Economic Perspectives, 14, 49 (2000)
  6. Greenwood Jeremy, American Economic Review, 87, 342 (1997)
  7. Greenwood Jeremy, Yorukoglu Mehmet, 1974, 10.1016/s0167-2231(97)00004-3
  8. Grether Jean-Marie, Determinants of Technological Diffusion in Mexican Manufacturing: A Plant-Level Analysis, 10.1016/s0305-750x(99)00054-6
  9. Jovanovic Boyan, Advances in Economics, 2 (1997)
  10. Michel Juillard , "DYNARE, a Program for the Resolution of Nonlinear Models with Forward-Looking Variables. Release 2.1 ,"CEPREMAP, Working Paper 9602 (1996 ).
  11. Nelson Richard R., American Economic Review, 56, 69 (1966)
  12. Niosi Jorge, Hanel Petr, Fiset Liette, Technology transfer to developing countries through engineering firms: The Canadian experience, 10.1016/0305-750x(95)00068-n
  13. Paul S. Segerstrom , "Naomi Klein and the Anti-Globalization Movement ,"Manuscript. Stockholm School of Economics (2003 ).
  14. Romain T. Wacziarg, and Karen Horn Welch , "Trade Liberalization and Economic Growth: New Evidence ,"Manuscript. Stanford University (2002 ).
Bibliographic reference Boucekkine, Raouf ; Martinez, Blanca ; Saglam, Cagri. The Development Problem under Embodiment. In: Review of Development Economics : an essential resource for any development economist, Vol. 10, no. 1, p. 42-58 (Janvier 2006)
Permanent URL http://hdl.handle.net/2078.1/23189