Abstract
This study examines Technology spillover from rich to poor countries, the study used a model that, at the aggregate level, is similar to the one sector neoclassical growth model. The model was estimated using data on technical progress, Average Product Per-Worker, Capital Stock and Technology Intensive Goods in 25 countries which consist of rich and poor countries over the last decade. A dynamic panel model is formulated and estimated Using Generalized method of moments by Arelano and Bond; and the implications of the estimates were evaluated for aggregate total factor productivity and economic growth. The results reveal that, on average, technology have contributed more to economic growth in high income economies and on the contrary technology have made little or no contribution in low income countries. Consequently, there is substantial variation across technologies and economies
Highlights
Technological progress refers to improvements in the techniques and methods by which goods and services are produced, branded and sold in an economy (Chandra, 2006)
From the findings it is obvious that technology have not flown from the rich to the poor countries as there is still a considerable disparity between technology and technical progress in High income OECD countries and Low income countries
The study have revealed that the impact of technical progress on economic growth is not constant for all income groups
Summary
Technological progress refers to improvements in the techniques and methods by which goods and services are produced, branded and sold in an economy (Chandra, 2006). The relationship between total factor productivity and domestic and foreign knowledge capital stock has been examined in a sample of 22 industrial economies during the period 1991 to 2010 They have found that accumulated spending on R&D by a country and by its trade partner helps to explain the growth of total factor productivity. In their study they have completely ignored the impact of domestic R&D stock on total factor productivity of economies on the pretext of non-availability of reliable data It has been argued in technological capability literature that the developing countries must invest in R&D to acquire the technical capability needed to make use of the public domain knowledge to enhance its productivity (Cohen and Levinthal, 2012; Fransman and King, 2014). Verspagen’s model predicts a world in which there is a club of very poor countries and another club of converging wealthy countries
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
