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Cross-country technology gap in Latin America

Growth accounting and non-parametric approaches

Bibliographic Data

ID20501664
AuthorsKaustav Misra (0000-0003-4726-8015, Saginaw Valley State University), Esra Memili (0000-0001-5634-4978, University of North Carolina at Greensboro), Dianne H B Welsh (0000-0003-0738-1726, University of North Carolina at Greensboro), Surender Reddy (Saginaw Valley State University), Gail E Sype (Saginaw Valley State University)
Year2015
Volume22
Issue4
Pages630-648
Publication date2015-10-05
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueCross Cultural Management An International Journal (JOURNAL)
Journal identifiersISSN: 1352-7606 • E-ISSN: 1758-6089
PublisherEmerald (PUBLISHER)
DOI10.1108/ccm-04-2014-0043
OpenAlexW1781550627
LanguageEN
References cited31

Purpose – The purpose of this paper is to investigate the factors influencing the total factor productivity (TFP) gap between the USA and eight Latin American countries for the period of 1970-2000. Design/methodology/approach – The paper provides an explicit application of TFP estimation by employing a growth accounting approach (Solow Residual) in the presence of non-constant returns to scale and a non-parametric approach (DEA – Malmquist Index) while relaxing the scale-related constraint. A macro-based economic model of innovator and follower countries is employed to explore the linkage between technology gaps and innovations, labor productivity, trade openness, foreign direct investment, and adult workforce illiteracy rates. A pooled model and a fixed effects model are used to determine the factors of the technology gap between the innovator and the follower countries. Findings – The results show that the labor productivity gap, adult work force illiteracy rates, patent filing gap, and trade openness are significant determinants of the technology gap between innovator and follower country. Practical implications – Latin American countries would benefit from the technology diffusion from an innovator country; but a minimum threshold of human capital, such as adult workforce illiteracy rates and patent filing has to be met. The authors find government policies on trade openness also have large effects on technology limitations in foreign countries. Originality/value – This paper is of value to researchers, policy makers, and economic development specialists trying to improve the rate of technology adoption and innovation

Developing country · Economic growth · Economics · Foreign direct investment · Functional illiteracy · Human capital · International trade · Latin Americans · Macroeconomics · Openness to experience · Political science · Productivity · Technology gap · Total factor productivity · Workforce · Economic Growth and Productivity · Firm Innovation and Growth · Global trade and economics

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Highly citedNo

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