International technology diffusion channels and total factor productivity convergence: a statistical and comparative analysis of developing countries

Date

2024-2

Author

Özdemir, Ümran

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It is well known that differences in productivity levels explain a significant portion of international income per capita variation and that technology is one of the main determinants of productivity levels. Expanding technology levels is possible either through autonomous technology creation, which is usually related to research and development (R&D) activity, or technology diffusion. Since most of the technology creation happens in developed and rich countries, international technology diffusion plays a major role in technology absorption in developing countries. It offers them great opportunities for economic growth. This thesis aims to explore the extent to which developing countries benefit from foreign technology, the diffusion mechanisms/channels involved, the factors that shape their absorption capabilities, and the sources of heterogeneity in the technology spillover gains by comparing with each other. Moreover, the other purpose of this thesis is to evaluate the role of technology diffusion in total factor productivity (TFP) convergence in developing countries through a comparative analysis. Two equations are estimated for analysis: the first model evaluates the relative effects of various diffusion channels and heterogeneity factors on TFP, and the second assesses the impact of international technology diffusion on TFP convergence between developed and developing countries. The analysis covers 46 developing countries and G7 countries from 2000 to 2019. The overall results demonstrate that, although the benefits of technology diffusion vary depending on the diffusion channels and some country-specific characteristics, international technology diffusion is essential in helping developing countries close the productivity gap with developed ones.

Subject Keywords

International technology/knowledge/R&D diffusion/spillovers, Total factor productivity, Convergence, Economic growth

URI

https://hdl.handle.net/11511/108399

Collections

Graduate School of Social Sciences, Thesis