Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/69481
Authors: 
Cervellati, Matteo
Naghavi, Alireza
Toubal, Farid
Year of Publication: 
2013
Series/Report no.: 
Discussion Paper Series, Forschungsinstitut zur Zukunft der Arbeit 7132
Abstract: 
We study the role of trade liberalization, democratization and their interaction for technology adoption. A general equilibrium theory with heterogeneous skills predicts a complementarity between trade and political regimes. Openness should accelerate technology adoption if coupled with democratization but may lead to a slow down if these regime changes are imbalanced. We use panel data on technology adoption at the sectoral level for the period 1980-2000 by exploiting within country variation and the heterogenous timing of openness and democratization. The results document the existence of robust positive interactions between these institutional changes for technology adoption and productivity growth.
Subjects: 
trade openness
democratization
political economy theory
technology adoption
sector level panel data
cross-country analysis
JEL: 
F16
J24
O14
P51
F59
Document Type: 
Working Paper

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