Why doesn't technology flow from rich to poor countries?

• Autores: Harold L. Cole, Jeremy Greenwood, Juan M. Sanchez
• Localización: Econométrica: Journal of the Econometric Society, ISSN 0012-9682, Vol. 84, Nº 4, 2016, págs. 1477-1521
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Dialnet Métricas: 1 Cita
• Resumen

  • What is the role of a country's financial system in determining technology adoption? To examine this, a dynamic contract model is embedded into a general equilibrium setting with competitive intermediation. The terms of finance are dictated by an intermediary's ability to monitor and control a firm's cash flow, in conjunction with the structure of the technology that the firm adopts. It is not always profitable to finance promising technologies. A quantitative illustration is presented where financial frictions induce entrepreneurs in India and Mexico to adopt less-promising ventures than in the United States, despite lower input prices.