Abstract
Scale effects in endogenous growth models have been questioned by the fact that a remarkable increase in the number of scientists and engineers engaged in R&D in the postwar United States was indeed associated with a productivity slowdown. This paper, however, shows that this evidence could be reconciled with scale effects, once technology diffusion from technologically leading countries to followers by foreign direct investment (FDI) is incorporated into a standard model. If FDI requires scientists and engineers of advanced countries to adapt existing technologies to the local environment and to train local workers, the number of scientists and engineers would increase as the magnitude of technology diffusion expands. Also, the emergence of FDI as more profitable opportunities for scientists and engineers could lead to a domestic productivity slowdown in advanced countries.
| Original language | English |
|---|---|
| Pages (from-to) | 25-46 |
| Number of pages | 22 |
| Journal | Journal of Macroeconomics |
| Volume | 25 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 2003 Mar |
| Externally published | Yes |
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Keywords
- Foreign direct investment
- Scale effects
- Technology diffusion
ASJC Scopus subject areas
- Economics and Econometrics
Cite this
Empirically consistent scale effects : An endogenous growth model with technology transfer to developing countries. / Todo, Yasuyuki.
In: Journal of Macroeconomics, Vol. 25, No. 1, 03.2003, p. 25-46.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Empirically consistent scale effects
T2 - An endogenous growth model with technology transfer to developing countries
AU - Todo, Yasuyuki
PY - 2003/3
Y1 - 2003/3
N2 - Scale effects in endogenous growth models have been questioned by the fact that a remarkable increase in the number of scientists and engineers engaged in R&D in the postwar United States was indeed associated with a productivity slowdown. This paper, however, shows that this evidence could be reconciled with scale effects, once technology diffusion from technologically leading countries to followers by foreign direct investment (FDI) is incorporated into a standard model. If FDI requires scientists and engineers of advanced countries to adapt existing technologies to the local environment and to train local workers, the number of scientists and engineers would increase as the magnitude of technology diffusion expands. Also, the emergence of FDI as more profitable opportunities for scientists and engineers could lead to a domestic productivity slowdown in advanced countries.
AB - Scale effects in endogenous growth models have been questioned by the fact that a remarkable increase in the number of scientists and engineers engaged in R&D in the postwar United States was indeed associated with a productivity slowdown. This paper, however, shows that this evidence could be reconciled with scale effects, once technology diffusion from technologically leading countries to followers by foreign direct investment (FDI) is incorporated into a standard model. If FDI requires scientists and engineers of advanced countries to adapt existing technologies to the local environment and to train local workers, the number of scientists and engineers would increase as the magnitude of technology diffusion expands. Also, the emergence of FDI as more profitable opportunities for scientists and engineers could lead to a domestic productivity slowdown in advanced countries.
KW - Foreign direct investment
KW - Scale effects
KW - Technology diffusion
UR - http://www.scopus.com/inward/record.url?scp=0347534011&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0347534011&partnerID=8YFLogxK
U2 - 10.1016/S0164-0704(03)00005-3
DO - 10.1016/S0164-0704(03)00005-3
M3 - Article
AN - SCOPUS:0347534011
VL - 25
SP - 25
EP - 46
JO - Journal of Macroeconomics
JF - Journal of Macroeconomics
SN - 0164-0704
IS - 1
ER -