19th International Conference Working Papers
Import-Based Technology Shocks: Evidence from PolandEwa Minska-Struzik, The Poznan University of Economics, Poland Download the Paper (PDF format) - July 14, 2009 Tell a colleague about it. Printing Tips: Select 'print as image' in the Acrobat print dialog if you have trouble printing. ABSTRACT: From the perspective of a less developed country most innovations occur abroad. To capitalize on technological progress such country must obtain innovations. International trade is one of the major channels for technology transfer. It may significantly contribute to productivity growth by providing products and services that embody new technology which would otherwise be unavailable or too costly to acquire. In the case of a less developed country import-based technology transfer may cause a so-called technology shock. International trade as a channel of technology diffusion has received much study recently. Researchers share an opinion that it transmits a significant amount of knowledge, but their quantitative estimates differ across countries. We check the importance of foreign technology spillovers to Poland by testing indicators able to capture and measure technology shocks that stem from import of intermediate inputs. Of particular interest are indices of import penetration combined with price-to-weight ratio. We employ these measures in a VAR model which we Granger-test for causality. The results show that foreign technology spillovers embodied in capital goods trade have a positive effect on Polish TFP. The effects are stronger in more innovative sectors. This paper was prepared for presentation to the 19th International Conference of the International Trade and Finance Association in Beijing, China, May 27-30, 2009. SUGGESTED CITATION:
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