Models of technology diffusion
|Author(s):|| PhDr. Michal Hlaváček Ph.D., |
|Type:||IES Working Papers|
|ISSN / ISBN:|
|Published in:||IES WP 2001/1|
|Abstract:||The article presents the model of technology diffusion between two countries. First ("West") develops the technology, whilst the second ("East") just copies it. Both the developments of the new technology and copying the existing technology depends on the amount of the resources (capital and labor) devoted to these activities. Moreover the copying of the technology in "East" is done with some time leg as the older technology is ceteris paribus copied more easily than the new one. The result of the model is the explanation of the existing differences between GDP per capita among different countries. The model discussion stresses importance of the human capital, foreign direct investment and foreign trade for lag factor in technology diffusion and thus for long run economic growth in developing countries.
Key words : technology diffusion, mathematical models, long run economic growth