Technology gap, catching-up and outward orientation: Analysis of 63 countries

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This paper examines the determinants of technological catching-up across 63 countries over the period 1982-2000 using a two staged approach. In the first stage, a measure of the technology gap between countries and the global technology frontier is computed. A positive growth of this measure is interpreted as technological catching-up. In the second stage, technology gap and technological catching-up are regressed against trade openness, FDI inflows and FDI outflows, domestic R&D, and human capital. Two main findings emerge. First, technologically backward countries catch-up faster. Second, FDI inflows, trade openness and human capital have positive effects on closing the technology gap.

Original languageEnglish
Pages (from-to)5-20
Number of pages16
JournalApplied Econometrics and International Development
Issue number2
Publication statusPublished - 1 Dec 2011
Externally publishedYes


  • Absorptive capacity
  • Catching-up
  • Foreign direct investment
  • Metafrontier
  • Technology gap


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