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Knowledge of Technology in Poor Countries

Knowledge of Technology in Poor Countries The paper focues on three variables that affect knowledge of technology. We found a negative crosscountry correlation between the efficiency of unskilled labor and the efficiencies of skilled labor and capital. We interpret this finding as evidence of the existence of a world technology frontier. On this frontier, increases in the efficiency of unskilled labor are obtained at the cost declines in efficiency of skilled labor and capital. We estimated a model in which firms in each choice optionally choose from a menu of technologies, i.e., their choice of technology depends on the countys endowment of skilled and unskilled labour, so that the model is one of appropriate technology. The estimation allowed for countryspecific technology frontiers, due to barriers to technology adoption. We found that poor countries tend disproportionately to be inside the world technology frontier. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Economic and Administrative Sciences Emerald Publishing

Knowledge of Technology in Poor Countries

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1026-4116
DOI
10.1108/10264116200400005
Publisher site
See Article on Publisher Site

Abstract

The paper focues on three variables that affect knowledge of technology. We found a negative crosscountry correlation between the efficiency of unskilled labor and the efficiencies of skilled labor and capital. We interpret this finding as evidence of the existence of a world technology frontier. On this frontier, increases in the efficiency of unskilled labor are obtained at the cost declines in efficiency of skilled labor and capital. We estimated a model in which firms in each choice optionally choose from a menu of technologies, i.e., their choice of technology depends on the countys endowment of skilled and unskilled labour, so that the model is one of appropriate technology. The estimation allowed for countryspecific technology frontiers, due to barriers to technology adoption. We found that poor countries tend disproportionately to be inside the world technology frontier.

Journal

Journal of Economic and Administrative SciencesEmerald Publishing

Published: Dec 1, 2004

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