Technology Adoption and Factor Proportions in Open Economies : Theory and Evidence from the Global Computer Industry

Theories of international trade assume that all countries use similar and exogenous technologies in the production of any good. This paper relaxes this assumption. The marriage of literatures on biased technical change and trade yields a tractable...

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Main Authors: Cusolito, Ana P., Lederman, Daniel
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090909090956
http://hdl.handle.net/10986/4236
id okr-10986-4236
recordtype oai_dc
spelling okr-10986-42362021-04-23T14:02:16Z Technology Adoption and Factor Proportions in Open Economies : Theory and Evidence from the Global Computer Industry Cusolito, Ana P. Lederman, Daniel ABSOLUTE ADVANTAGE BANK LENDING CENTRAL PROCESSING UNIT CENTRAL PROCESSING UNITS CODES COMMODITIES COMMODITY COMPARATIVE ADVANTAGE COMPONENTS COMPUTER INDUSTRY COMPUTERS COST FUNCTIONS DATA PROCESSING DATA PROCESSING EQUIPMENT DIGITAL DIGITAL DATA ECONOMETRIC ANALYSES ECONOMIC GROWTH ELASTICITY ELASTICITY OF SUBSTITUTION ELECTRICAL MACHINERY EMPLOYMENT EQUATIONS EQUILIBRIUM EQUIPMENT EXTERNALITIES FACTORS OF PRODUCTION FIXED COST GDP GLOBAL MARKET INNOVATION INNOVATIONS INSTITUTIONAL FRAMEWORKS INSURANCE INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY RIGHTS INTEREST RATES INTERNATIONAL COMPARISONS INTERNATIONAL TRADE INVENTION LABOR FORCE LABOR MARKET LABOR MARKETS LABOR ORGANIZATION MACROECONOMICS MANUFACTURING MANUFACTURING INDUSTRIES MARGINAL COST MARGINAL COST OF PRODUCTION MARGINAL PRODUCT MARKUP MEDIA MONOPOLISTIC COMPETITION NATIONAL INCOME NET EXPORTS OPEN ECONOMIES OUTPUTS PC PER CAPITA INCOME POLITICAL ECONOMY PROCESSORS PRODUCT DIFFERENTIATION PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION TECHNIQUES PRODUCTIVITY PROPERTY RIGHTS R&D RESULT RESULTS SAN SKILLED LABOR SKILLED WORKERS SUPPLIERS TECHNOLOGICAL CHANGE TOTAL FACTOR PRODUCTIVITY TRADE BALANCE UNSKILLED LABOR USES WAGES WEB WORLD TRADE Theories of international trade assume that all countries use similar and exogenous technologies in the production of any good. This paper relaxes this assumption. The marriage of literatures on biased technical change and trade yields a tractable theory, which predicts that differences in factor endowments and intellectual property rights bias technical change toward particular factor intensities, and thus unit factor input requirements can vary across economies. Using data on net exports of a single industry, computers, intellectual property rights and factor endowments for 73 countries during 1980-2000, the paper shows that once technological choices are considered, countries with different factor endowments can become net exporters of the same product. 2012-03-19T19:12:22Z 2012-03-19T19:12:22Z 2009-09-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090909090956 http://hdl.handle.net/10986/4236 English Policy Research working paper ; no. WPS 5043 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ABSOLUTE ADVANTAGE
BANK LENDING
CENTRAL PROCESSING UNIT
CENTRAL PROCESSING UNITS
CODES
COMMODITIES
COMMODITY
COMPARATIVE ADVANTAGE
COMPONENTS
COMPUTER INDUSTRY
COMPUTERS
COST FUNCTIONS
DATA PROCESSING
DATA PROCESSING EQUIPMENT
DIGITAL
DIGITAL DATA
ECONOMETRIC ANALYSES
ECONOMIC GROWTH
ELASTICITY
ELASTICITY OF SUBSTITUTION
ELECTRICAL MACHINERY
EMPLOYMENT
EQUATIONS
EQUILIBRIUM
EQUIPMENT
EXTERNALITIES
FACTORS OF PRODUCTION
FIXED COST
GDP
GLOBAL MARKET
INNOVATION
INNOVATIONS
INSTITUTIONAL FRAMEWORKS
INSURANCE
INTELLECTUAL PROPERTY
INTELLECTUAL PROPERTY RIGHTS
INTEREST RATES
INTERNATIONAL COMPARISONS
INTERNATIONAL TRADE
INVENTION
LABOR FORCE
LABOR MARKET
LABOR MARKETS
LABOR ORGANIZATION
MACROECONOMICS
MANUFACTURING
MANUFACTURING INDUSTRIES
MARGINAL COST
MARGINAL COST OF PRODUCTION
MARGINAL PRODUCT
MARKUP
MEDIA
MONOPOLISTIC COMPETITION
NATIONAL INCOME
NET EXPORTS
OPEN ECONOMIES
OUTPUTS
PC
PER CAPITA INCOME
POLITICAL ECONOMY
PROCESSORS
PRODUCT DIFFERENTIATION
PRODUCTION FUNCTION
PRODUCTION FUNCTIONS
PRODUCTION TECHNIQUES
PRODUCTIVITY
PROPERTY RIGHTS
R&D
RESULT
RESULTS
SAN
SKILLED LABOR
SKILLED WORKERS
SUPPLIERS
TECHNOLOGICAL CHANGE
TOTAL FACTOR PRODUCTIVITY
TRADE BALANCE
UNSKILLED LABOR
USES
WAGES
WEB
WORLD TRADE
spellingShingle ABSOLUTE ADVANTAGE
BANK LENDING
CENTRAL PROCESSING UNIT
CENTRAL PROCESSING UNITS
CODES
COMMODITIES
COMMODITY
COMPARATIVE ADVANTAGE
COMPONENTS
COMPUTER INDUSTRY
COMPUTERS
COST FUNCTIONS
DATA PROCESSING
DATA PROCESSING EQUIPMENT
DIGITAL
DIGITAL DATA
ECONOMETRIC ANALYSES
ECONOMIC GROWTH
ELASTICITY
ELASTICITY OF SUBSTITUTION
ELECTRICAL MACHINERY
EMPLOYMENT
EQUATIONS
EQUILIBRIUM
EQUIPMENT
EXTERNALITIES
FACTORS OF PRODUCTION
FIXED COST
GDP
GLOBAL MARKET
INNOVATION
INNOVATIONS
INSTITUTIONAL FRAMEWORKS
INSURANCE
INTELLECTUAL PROPERTY
INTELLECTUAL PROPERTY RIGHTS
INTEREST RATES
INTERNATIONAL COMPARISONS
INTERNATIONAL TRADE
INVENTION
LABOR FORCE
LABOR MARKET
LABOR MARKETS
LABOR ORGANIZATION
MACROECONOMICS
MANUFACTURING
MANUFACTURING INDUSTRIES
MARGINAL COST
MARGINAL COST OF PRODUCTION
MARGINAL PRODUCT
MARKUP
MEDIA
MONOPOLISTIC COMPETITION
NATIONAL INCOME
NET EXPORTS
OPEN ECONOMIES
OUTPUTS
PC
PER CAPITA INCOME
POLITICAL ECONOMY
PROCESSORS
PRODUCT DIFFERENTIATION
PRODUCTION FUNCTION
PRODUCTION FUNCTIONS
PRODUCTION TECHNIQUES
PRODUCTIVITY
PROPERTY RIGHTS
R&D
RESULT
RESULTS
SAN
SKILLED LABOR
SKILLED WORKERS
SUPPLIERS
TECHNOLOGICAL CHANGE
TOTAL FACTOR PRODUCTIVITY
TRADE BALANCE
UNSKILLED LABOR
USES
WAGES
WEB
WORLD TRADE
Cusolito, Ana P.
Lederman, Daniel
Technology Adoption and Factor Proportions in Open Economies : Theory and Evidence from the Global Computer Industry
geographic_facet The World Region
relation Policy Research working paper ; no. WPS 5043
description Theories of international trade assume that all countries use similar and exogenous technologies in the production of any good. This paper relaxes this assumption. The marriage of literatures on biased technical change and trade yields a tractable theory, which predicts that differences in factor endowments and intellectual property rights bias technical change toward particular factor intensities, and thus unit factor input requirements can vary across economies. Using data on net exports of a single industry, computers, intellectual property rights and factor endowments for 73 countries during 1980-2000, the paper shows that once technological choices are considered, countries with different factor endowments can become net exporters of the same product.
format Publications & Research :: Policy Research Working Paper
author Cusolito, Ana P.
Lederman, Daniel
author_facet Cusolito, Ana P.
Lederman, Daniel
author_sort Cusolito, Ana P.
title Technology Adoption and Factor Proportions in Open Economies : Theory and Evidence from the Global Computer Industry
title_short Technology Adoption and Factor Proportions in Open Economies : Theory and Evidence from the Global Computer Industry
title_full Technology Adoption and Factor Proportions in Open Economies : Theory and Evidence from the Global Computer Industry
title_fullStr Technology Adoption and Factor Proportions in Open Economies : Theory and Evidence from the Global Computer Industry
title_full_unstemmed Technology Adoption and Factor Proportions in Open Economies : Theory and Evidence from the Global Computer Industry
title_sort technology adoption and factor proportions in open economies : theory and evidence from the global computer industry
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090909090956
http://hdl.handle.net/10986/4236
_version_ 1764390535473135616