Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/77524
Authors: 
Gancia, Gino
Müller, Andreas
Zilibotti, Fabrizio
Year of Publication: 
2011
Series/Report no.: 
Working Paper Series, Department of Economics, University of Zurich 10
Abstract: 
We construct and estimate a unified model combining three of the main sources of cross-country income disparities: differences in factor endowments, barriers to technology adoption and the inappropriateness of frontier technologies to local conditions. The key components are different types of workers, distortions to capital accumulation, directed technical change, costly adoption and spillovers from the world technology frontier. Despite its parsimonious parametrization, our empirical model provides a good fit of GDP data for up to 86 countries in 1970 and 122 countries in 2000. Removing barriers to technology adoption would increase the output per worker of the average non-OECD country relative to the US from 0.19 to 0.61, while increasing skill premia in all countries. Removing barriers to trade in goods amplifies income disparities, induces skill-biased technology adoption and increases skill premia in the majority of countries. These results are reverted if trade liberalization is coupled with international IPR protection.
Subjects: 
Directed Technology Adoption
Development Accounting
Distance to Frontier
Inappropriate Technologies
Skill-biased Technical Change
Productivity
TFP differences
JEL: 
F43
O11
O31
O33
O38
O41
O43
O47
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
408.83 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.