On Barriers to Technology Adoption, Appropriate Technology and Deep Integration (with implications for the European Union)

Date

2018-08-31

Author

Mercenier, Jean
Voyvoda, Ebru

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Based on two strands of research, namely 'barriers to technology adoption' and 'appropriate technology', we propose a formal reappraisal of 'deep integration', a broad concept often used in trade policy discussions. We then evaluate the 2004-7 EU enlargement wave utilizing this operational reappraisal. More specifically, we first estimate, using 2007 data, total labor productivity (TLP) in the 27 EU member states, and show that in all but a few sectors, new member states clearly stand below the lower envelope technology frontier of the older members in their use of skilled and unskilled labor. We interpret this as being the result of past barriers to technology adoption that are likely to be removed by the integration process into the EU, with these new counties' TLP shifting to the incumbent members' lower envelope. We then explore the potential effects on all 27 EU member states of this 'deep integration' experiment using a calibrated intertemporal multisectoral general equilibrium model. Our main finding is that, for most parameter configurations, workers' welfare in incumbent member countries is not negatively impacted despite the rather drastic improvement in competitiveness experienced by new members

Subject Keywords

Barriers to technology adoption, Technological upgrading, Deep integration, European integration, calibrated general equilibrium, Calibrated general equilibrium, Appropriate technology

URI

https://hdl.handle.net/11511/83017

Conference Name

33rd Annual Congress Of The European Economic Association (27 - 31 Ağustos 2018)

Collections

Department of Economics, Conference / Seminar

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Citation Formats

J. Mercenier and E. Voyvoda, “On Barriers to Technology Adoption, Appropriate Technology and Deep Integration (with implications for the European Union),” presented at the 33rd Annual Congress Of The European Economic Association (27 - 31 Ağustos 2018), 2018, Accessed: 00, 2021. [Online]. Available: https://hdl.handle.net/11511/83017.