Appropriate Technology and Income Differences

Okoye, Dozie

doi:10.1111/iere.12182

Cited by 11 publications

(9 citation statements)

References 82 publications

(231 reference statements)

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“…16. Not surprisingly, the findings for the quality of human capital are in line with Okoye (2016) in the sense that the degree of factor complementarity matters in the productivity of human capital. This could explain why this development factor is more important for middle-income countries than for LICs.…”

Section: Notessupporting

confidence: 65%

“…Comin and Hobijn (2004) study the diffusion of 20 technologies in 23 countries and associate the rate of technological adoption to factors such as openness, human capital, and the economic regime of the countries under study. In a complementary paper, Okoye (2016) extends Caselli and Coleman (2006) to study whether the quality of human capital or the use of other complementarity factors (physical capital) make labor more productive, finding that complementarities with other production factors are important in explaining income differences.…”

Section: Introductionmentioning

confidence: 99%

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Technological Absorptive Capacity and Development Stage: Disentangling Barriers to Riches

Fuentes

Mies

2020

Macroecon. Dynam.

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Adoption of better technologies is a crucial way for developing countries to close productivity gaps with leading economies. However, the possibility of growing through technological adoption depends decisively on the country’s absorptive capacity. We build a theoretical model of technology adoption that focuses on four factors that shape the countries’ technological absorptive capacity, namely: (i) years of education; (ii) quality of the educational system; (iii) barriers that impede the entry and exit of firms; and (iv) the institutions that enhance or impede the diffusion of new technologies. We calibrate the model for a sample of 86 economies. The USA is our benchmark leading economy. We disentangle the relative weight of each development factor in explaining per capita income differences and study patterns in relationships between the type of development barrier and the level of development. Our results show that in relative terms, years of education and education system quality along with high barriers to opening new firms are the main impediments that middle- to high-income economies face in closing the gap with the USA. Education as a whole (quality plus years of education) explains 50% of the gap between high-income countries (HICs) and the USA, while the entry costs account for nearly 25% of this gap. A remarkable result is the small effect that individual reforms have on steady-state productivity in low-income countries (LICs). Outside of institutional framework, the remaining three factors are individually responsible for less than 15% of the gap. This result is explained by poor global absorptive capacity that reduces the effect of each factor when implemented individually. In fact, there are significant nonlinearities between development level and the effects of individual reforms, which are due to the strong complementarities between the different development factors.

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Section: Notessupporting

confidence: 65%

Section: Introductionmentioning

confidence: 99%

Technological Absorptive Capacity and Development Stage: Disentangling Barriers to Riches

Fuentes

Mies

2020

Macroecon. Dynam.

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“…Generally, appropriate technology adapted to the environmental, ethnic, cultural, social, political, and economic aspects of the community concerned. Appropriate technology is usually applied to describe simple technologies that are emphasized to the user that suitable for developing countries or else underdeveloped rural areas in industrialized countries [34] [35].…”

Section: F Appropriate Technology Designmentioning

confidence: 99%

A study on the applicability of batik for public transportation design in Indonesia

Sya'Bana

Park

2020

J. Mechatron. Electr. Power Veh. Technol.

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This paper attempts to grant Indonesian identity in the development and importing the public transportation equipment from overseas. We reviewed and surveyed the present state issues of Indonesian public transportation equipment design development. The study analyzed the philosophical values of batik in a modern way, the possibility of batik application for important regionalism identity, and identity in design development strategy. As a result, we gather and assess the philosophical values of Batik motifs that contain geographic origin, the essences, and characteristics to be applied as design element strategies. We found the regional identity of the historical, local wisdom essence, acculturation, various colors, and original shapes of the Batik motifs. Moreover, Indonesian fancy design is also supported by other possibilities indigenous material and technique that usually used, particularly in Indonesia. These possibilities were identically Indonesian and also applicable as the sustainable public transport equipment design identity issue solution. This effort was conducted as the turning point to solve the issues of public transport equipment design strategies dependency. Thus, this research will be helpful for aesthetics research in the modern way of the public transportation equipment design concept.

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“…Compared to these papers, my main contributions are (i) a richer account of the cross-country gaps in relative skill efficiency, made possible by the use of cross-country micro-level data, and (ii) a migrant-based decomposition of relative human capital and technology as sources of these gaps. 1 The second exercise relates to Okoye (2016), which uses the Mincerian returns for US immigrants estimated in Schoellman (2012) to discipline the cross-country variation in relative human capital in the context of a model with imperfect substitutability between skill groups and skill-biased technology adoption. My work differs in terms of both empirical implementation and focus of the analysis.…”

mentioning

confidence: 99%

“…Methodologically, I add to Okoye (2016) by using skill premia estimated from micro data from multiple countries, by computing a decomposition of the cross-country variation in relative skill efficiency and by quantifying the effects of several possible confounders associated with a migrant-based identification strategy. Moreover, while Okoye (2016) focuses on the extent to which poor countries face barriers to the adoption of skill-specific technologies, I use my decomposition results to shed light the ongoing debate on the role of human capital and imperfect substitutability in development accounting.…”

mentioning

confidence: 99%

The Relative Efficiency of Skilled Labor across Countries: Measurement and Interpretation

Rossi

2022

American Economic Review

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I study how the relative efficiency of high- and low-skill labor varies across countries. Using microdata for countries at different stages of development, I document that differences in relative quantities and wages are consistent with high-skill workers being relatively more productive in rich countries. I exploit variation in the skill premia of foreign-educated migrants to discriminate between two possible drivers of this pattern: cross-country differences in the skill bias of technology and in the relative human capital of skilled labor. I find that the former is quantitatively more important, and discuss the implications of this result for development accounting. (JEL I26, J24, J31, J61, L16, O15)

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Appropriate Technology and Income Differences

Cited by 11 publications

References 82 publications

Technological Absorptive Capacity and Development Stage: Disentangling Barriers to Riches

Technological Absorptive Capacity and Development Stage: Disentangling Barriers to Riches

A study on the applicability of batik for public transportation design in Indonesia

The Relative Efficiency of Skilled Labor across Countries: Measurement and Interpretation

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