Abstract
Even though developing countries demand to disclose advanced technology of developed countries, it is hardly possible that the developed countries disclose their technology for nothing as they worked very hard to get it through R&D investment. This research analyzes the effects of technology disclosure on the economic growth and the utility level in the developed countries and suggests the conditions which have positive effect of technology disclosure on the utility level in the developed countries. The conditions give hints what developing countries should do to elicit the information about the advanced technology. The conditions are as follows: (i) cheap price of imported goods, (ii) large size of export market, (iii) small size of labor market, (iv) low productivity of technology development, and (v) advanced technology is less likely to be public technology.
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Notes
See Chapter 8 on page 379 for details.
See Aghion and Griffith (2005) on page 15 for details.
Falvey et al. (2006) shows that the effect of intellectual property rights protection on growth is state-dependent. It is positively and significantly related to growth for low- and high-income countries, but not for middle-income countries.
See Chapter 14 on page 480 and 485 for details.
The conditions (iii) and (iv) are not mentioned, because developing countries cannot have influence on these conditions.
We gratefully acknowledge the valuable explanations which the reviewer pointed out.
See Chapter 7 on page 202 for details.
The footnote 1 on page 286 in Barro and Sala-i-Martin (2003) offers detailed description of the utility function.
\(\frac {\partial \ln \left (B(g^{ss}_{A}) \right )}{\partial g^{ss}_{A}}<0\) and \(\frac {\partial \ln (1+g_{A}^{ss})}{\partial g_{A}^{ss}}>0\).
The finer the grid, the closer we get to the precise solution of the problem. But the finer the grid, the more time and the better computer we need to calculate. Due to the limitations of memory, 16 nodes was the limitation of our computers for this research. We tried to calculate with 17 nodes but it could not be calculated due to the memory shortage.
The remaining 13, 764, 916 (= 166 − 23, 830 − 2, 988, 470) cases do not satisfy the parameter conditions which are m > n, α − ψ + ψα > 0, η > 0, ζ > 0, B > 0, etc.
We think that the numbers depend on the range of parameters.
Under these conditions, an international product cycle may turn quickly and a comparative advantage may occur frequently. Using our model, we obtained the results that when the price of imported goods (μ) is low (high), the domestic production ratio (ϕ) is low (high) and when the size of labor market (L) is small (large), the domestic production ratio (ϕ) is low (high). When the price of imported goods is low and the size of labor market is small, the countries with advanced technology import traditional goods from developing countries and specialize in R&D and high-tech manufacturing sectors with comparative advantages for them.
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Shin, I. Learning advanced technology in easier ways from developed countries. J Econ Finan 44, 120–139 (2020). https://doi.org/10.1007/s12197-019-09476-6
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DOI: https://doi.org/10.1007/s12197-019-09476-6
Keywords
- Endogenous economic growth
- Disclosure of technology
- Monopolistic competition
- Research and development
- Product cycle