reassessing the impact of barriers to capital accumulation on international income differences can barriers to capital accumulation account for large differences in gdp per capita we reconsider the claim that these barriers have an amplified effect on income levels in a model where both modern and traditional sector technologies are active we show that this claim is not correct we do find however that the removal of barriers to capital accumulation can cause large changes in the employment shares of labor thus the model can account for an important stylized fact of the development process with labor moving from the traditional to the modern sector as income levels rise

tourism and economic growth nexus revisited a panel causality analysis for the case of the mediterranean region abstract tourism is perceived as an important source of foreign exchange that is used for financing economic growth this study offers a modern approach to tourism led growth and investigates the causal relationship between tourism and economic growth in the european asian and african countries that border the mediterranean sea the study uses panel data for the period 1998 2011 and adopts a panel granger causality analysis developed by dumitrescu and hurlin 2012 to assess the contribution tourism makes to economic growth in each country the results indicate that the direction of causality between tourism and economic growth depends on the country group and tourism indicator furthermore the european countries are better able to generate growth from tourism in the mediterranean region

relative prices and investment rates abstract we construct a panel for the price of aggregate investment over consumption and report the following observations 1 relative price differences across countries are large over the entire sample period and this conclusion is not affected by excluding non tradable consumption goods 2 relative price dispersion has decreased during the sample period 3 relative price changes are not persistent across periods while average price levels are moreover the persistence in relative price levels is higher for countries at low relative prices we show that the relative price of investment is negatively correlated with investment rates in a cross section of countries the standard one sector growth model is a natural framework to study quantitatively the effects of barriers to capital accumulation since there is a very simple mapping between barriers to investment and relative prices in this environment we simulate a calibrated version of the model in which barriers follow a stochastic process common to all countries and estimated using relative price data and obtain statistics for investment rates that closely resemble what we observe in the data in particular the model accounts for 90 of the 1985 gini index of relative investment rates and the decline in investment rate dispersion over time the model has two limitations as a theory of development first it cannot account for the income disparity in the data unless we assume unmeasured capital with barriers affecting the broad measure of capital second even under these extreme assumptions the model cannot account for the evolution of income disparity over time

wholly owned subsidiary versus technology licensing in the worldwide chemical industry this paper empirically analyzes the determinants of the choice between wholly owned subsidiary and technology licensing as a strategy for expansion abroad we use a new and comprehensive database on worldwide plant level investments in the chemical industry during the 1981 1991 period we find that both cultural distance and the presence of other potential licensors favor the use of licensing as a strategy for expanding abroad whereas prior experience favors the choice of wholly owned subsidiary an implication of this study is that competition in the market for technology can foster the international diffusion of technology through the use of arm s length agreements

the propensity to patent abstract this paper analyzes the relationship between 1974 rd among the exceptions the tendency was toward diminishing returns variables measuring overseas sales federal r d support diversification scope of invention use and invention type had only modest explanatory power there was no significant evidence of disproportionate patent accumulation in the more highly concentrated industries

market growth economies of scale and plant size in the chemical processing industries what factors determine the size of new industrial plants this study uses data on twenty tw o chemical products to test alternative models of capacity expansion including the manne model and a scale frontier model the empiri cal results strongly support the scale frontier model the size of n ew plants increased along a time trend that was unrelated to market c oncentration market growth or the magnitude of investment scale eco nomies entrants typically built smaller plants than incumbents but all firms built plants closer to the technological frontier when smal l plants carried a higher relative cost penalty copyright 1987 by blackwell publishing ltd

patents licensing and market structure in the chemical industry abstract the strategies of rent appropriation and industry structure are inter dependent how firms use patents depends upon industry structure and in turn affects industry structure in the 19th century market leaders in the chemical industry combined patents and secrecy to deter entry within cartels patents were used to stabilize cartels and organize technology licensing the role of patents changed in the less concentrated post world war ii markets in bulk organic chemicals and petrochemicals chemical producers use licensing as an important means of generating revenue from process innovations the increased importance of technology licensing is closely related to the emergence of a class of specialized process design and engineering firms that have played an important role in the development and diffusion of process innovations

ideas for rent an overview of markets for technology this article surveys some of the recent literature on technology markets and summarizes its main issues and insights we structure our analysis in three parts the supply and demand of technology the factors that condition the formation and growth of technology markets industry structure and dynamic issues in addition we summarize some of the studies that have tried to document the size and growth of these markets we find that the literature has focused mainly on the supply of technology but several other aspects of these markets remain under studied including the demand for external technology the role of uncertainty in technology markets and the dynamic interaction between industry structure and the market for technology understanding these will illuminate whether markets for technology will continue to grow or remained confined to pockets of the economy copyright 2010 the author 2010 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

patents learning by doing and market structure in the chemical processing industries for a sample of 24 chemical products count data models are used to evaluate firms propensity to patent and the link between patented process innovations and output prices the results show that process patenting was largely an outgrowth of learning by doing propensity to patent increased with firm size but decreased with market concentration reductions in output prices were strongly linked to learning by doing and more weakly to the rate of patenting producer firms appear to have been more successful than non producers in appropriating the value of patented process innovations

homework in development economics household production and the wealth of nations we introduce home production into the neoclassical growth model and examine its consequences for development economics in particular we study the extent to which one can account for international income differences with differences in policies that distort capital accumulation in models with home production such policies not only reduce capital accumulation but also change the mix of market and nonmarket activity hence these models can generate larger differences in output than standard models for a given policy differential we also show how the welfare implications change when we incorporate home production

international trends in technological progress evidence from patent citations 1980 2011 we analyse cross country trends in several aspects of technological progress during 1980 2011 by examining the us patent citations data our estimation results on patent quality and citation lags relative to the us reveal the following the emerging asian economies of korea taiwan and china have achieved substantial catch up in the case of korea and taiwan progress has been made in both patent quality and citation lags china has achieved improvement in patent quality but not in citation lag in contrast advanced economies of europe and japan have displayed steady decline in patent quality while the us has strengthened its position

strategic trade policy and welfare foreign equity ownership is shown empirically to weaken significantly and occasionally reverse common strategic trade policy results existing levels of u s cross ownership for example reduce the average optimal export subsidy by 47 relative to the brander and spencer journal of international economics 1985 18 83 100 value in industries with particularly high cross ownership and relatively small imputed labor rents optimal subsidies fall to less than one seventh of their former level previous studies which overlook high rates of cross ownership overstate the effectiveness of strategic policies most sharply in sectors with above average expected profitability scope for strategic investments and barriers to rent dissipation

skill complementarity and the dual economy abstract i propose a new explanation for the large productivity gaps between agriculture and nonagriculture observed in developing countries namely that the elasticity of substitution between skilled and unskilled workers is higher in agriculture than in nonagriculture i estimate the elasticities in a cross country data set and use the results to simulate a simple two sector model in which heterogeneous elasticities of substitution affect relative sectoral productivity levels through the allocation of human capital calibrated to match data from the united states the model predicts sizable agricultural productivity gaps in countries where the share of highly educated workers in the labor force is low

preemptive patenting and the persistence of monopoly this article takes a different tack and inquires whether institutions such as the patent system create opportunities for firms with monopoly power to maintain their monopoly power the results apply to other situations such as brand identification spatial location and capacity expansion which share the characteristic that early or preemptive actions may lower the returns to potential competitors

the learning curve and pricing in the chemical processing industries data on 37 chemical products are used to test a number of hypotheses about the learning curve and industrial price behavior the results document a strong and consistent learning effect learning is found to be a function of cumulated industry output and cumulated investment rather than calendar time standard economies of scale appear significant but small in magnitude relative to the learning effect variations in the slope of the learning curve are linked to differences in r d expenditures and capital intensity market concentration is found to be a strong influence on price flexibility and the timing of learningrelated price changes

how much do distortions affect growth abstract this paper presents a simple endogenous growth model with two types of capital which can display sizeable long run growth effects of distortionary policies the model applies to many different types of distortions of relative prices common in developing countries such as differential taxes and tariffs black market exchange rates and price controls the model shows that a subsidy to one type of capital financed by a tax on another capital good lowers growth a measure of the variance of relative prices of investment goods across sectors has a negative and statistically significant effect on growth

a penny for your quotes patent citations and the value of innovations the use ofpatents in economic research has been seriously hindered by the fact that patents vary enormously in their importance or value and hence simple patent counts cannot be informative about innovative output the purpose of this article is to put forward patent counts weighted by citations as indicators of the value of innovations thereby overcoming the limitations of simple counts the empirical analysis of a particular innovation computed tomography scanners indeed shows a close association between citation based patent indices and independent measures of the social value of innovations in that field moreover the weighting scheme appears to be nonlinear increasing in the number of citations implying that the informational content of citations rises at the margin as in previous studies simple patent counts are found to be highly correlated with contemporaneous rd however here the association is within afield over time rather than cross sectional

fees versus royalties and the private value of a patent we compare how much profit an owner of a patented cost reducing invention can realize by licensing it to an oligopolistic industry producing a homogeneous product by means of a fixed fee or a per unit royalty our analysis is conducted in terms of a noncooperative game involving n 1 players the inventor and the n firms in this game the inventor acts as a stackelberg leader and it has a unique subgame perfect equilibrium in pure strategies it is shown that licensing by means of a fixed fee is superior to licensing by means of a royalty for both the inventor and consumers only a drastic innovation is licensed to a single producer

barriers to capital accumulation and aggregate total factor productivity i develop a growth model where a single good can be produced with a traditional and a modern technology the traditional technology features low total factor productivity tfp and a low share of reproducible capital in this framework barriers to capital accumulation affect technology use and therefore aggregate tfp the theory thus connects recent models of factor accumulation and of tfp the model is calibrated by interpreting traditional production as agriculture and nonreproducible capital as land the theory implies that barriers are associated with large agricultural shares as supported by cross country and time series evidence the required tfp differences needed in the model to account for a given income disparity are reduced by 1 2 relative to the standard model that abstracts from technology choice