Open AccessAbility-Biased Technical Change and Productivity Bonus in a Nested Production Structure: A Theoretical Model with Endogenous Hicks-Neutral Technology Spillover
Author(s) -
Gouranga Gopal Das
Publication year - 2019
Publication title -
scientific annals of economics and business
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.204
H-Index - 6
eISSN - 2501-3165
pISSN - 2501-1960
DOI - 10.47743/saeb-2019-0030
Subject(s) - economics , spillover effect , productivity , profit (economics) , technological change , production (economics) , wage , stock (firearms) , capital intensity , industrial organization , endogenous growth theory , microeconomics , technical change , labor intensity , labour economics , human capital , macroeconomics , market economy , mechanical engineering , engineering
This paper develops a model of endogenous trade-mediated productivity spillover in which jointly trade-intensity, capital-intensity of production, and skill-intensity for adoption of technology from an exogenously available stock of world knowledge determine firm’s productivity. The representative firm, in the process of maximising profit (or minimising costs), takes into account the benefits of technological improvements embodied in imported intermediates. Sectors with higher skilled labour intensity will have an advantage in extracting the ‘bonuses’ from spillovers. The framework is useful for exploring technology adoption, considering wage premium, investigating innovative changes in sectors, and analysing productivity differences.