Economic Development and Technology Diffusion

Kurt Hafner

DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade

Abstract: I first present a New Economic Geography model and analyze the impact of R&D on economic development of integrating countries. I find that technology diffusion and skilled labor migration stimulates economic development through fix cost reduction on a firm level. As the inclusion of foreign technology matters for structurally backward countries, I second use time series data for Greece, Portugal, Spain and Ireland representing European integration during the 1980s and 1990s. In considering three different technology diffusion channels, estimates, however, reduces to Portugal as test procedures confirm nonstationarity and cointegration only for this country. I find empirical evidence for bilateral trade as a diffusion channel but not for FDI or foreign patents.

Keywords: Economic Geography; Agglomeration; Technology Diffusion; Nonstationary Time Series (search for similar items in EconPapers)
Pages: 30 pages JEL Classification: C22, C68, O30, R12
Date: 2007-06
New Economics Papers: this item is included in nep-dev, nep-ino, nep-int and nep-ure
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Related works:
Journal Article: Technology spillover effects and economic integration: evidence from integrating EU countries (2014)
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