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Who leads and who lags? Technology Diffusion, E-commerce and Trade Facilitation in a model of Northern hub vis-à-vis Southern spokes

Who leads and who lags? Technology Diffusion, E-commerce and Trade Facilitation in a model of Northern hub vis-à-vis Southern spokes

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In this paper, advanced economies are aggregated into ‘North’ whereas ‘South’ comprises the less advanced ones. Trade induced technology diffusion is source of enriched technological contents. We also consider two scenarios: (i-“hub and spokes [HAS]”) the North establishes separate bilateral FTAs with each South; and (ii-“FTASS”) Southern economies jointly establish a full-fledged FTA with North. Simulations confirm that: (i) North- South and South-South trade-led technology diffusion induces TFP-growth; (ii) relatively less developed South catches up; (iii) three regions experience welfare improvement; and (iv) ITenabled E-commerce facilitate trade. Public policies play role in catalyzing international competitiveness, innovativeness and absorption.

Ⅰ. Introduction : A Brief Review of the Issues

Ⅱ. A North-South Perspective on Technology Diffusion: Literature, Stylized Evidences and Theory

Ⅲ. Model of Technology Diffusion

Ⅳ. Mechanism for E-commerce and Trade Facilitation

Ⅴ. Methodological Framework, Database and Parameters

Ⅵ Simulation Design and Counterfactuals

Ⅶ. Analysis of Results

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