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Globalization, socio-institutional factors and North–South knowledge diffusion: Role of India and China as Southern growth progenitors

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  • Das, Gouranga
Abstract
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.

Suggested Citation

  • Das, Gouranga, 2010. "Globalization, socio-institutional factors and North–South knowledge diffusion: Role of India and China as Southern growth progenitors," MPRA Paper 37252, University Library of Munich, Germany, revised 01 Aug 2011.
    • Handle: RePEc:pra:mprapa:37252
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    References listed on IDEAS

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    Cited by:

    1. Das, Gouranga, 2012. "Fragmentation in Production, Vertical Integration and Wage Inequality: A Theoretical Note," MPRA Paper 47455, University Library of Munich, Germany.

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    More about this item

    Keywords

    Spillover; Human capital; Governance; Hub-and-spokes; Innovation and absorptive capacity; Gini; Poverty gap;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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