Hello everyone
What is the best economic indicator that reflects the spillover technology variable?
I have read many studies and found that most of them use many indicators, for example, these key terms were used (technology gap, technological repercussions, technological absorptive capabilities) and indicators were used, for example (innovation, research and development, human capital, imports, trade openness), as most of them analyze this relationship at the level of companies, whether for a sector or group of sectors in one country or a group of countries.
But I want to link the indirect relationship of foreign direct investment to economic growth through technological channels at the level of one country?
What are the theories that should be relied upon besides theories of economic growth, and what is the closest term to measuring technological channels?
Please let me know about that
all my respect and appreciation
Hello Afnan
its complicated, but indeed the capital formation (fixed and current) play great role in measuring this spillover, which indicate the means of production.
I think that you want to capture the diffusion of technology. In the US, the government categorises places as left behind in its Federal Register. You may want to look at the economic base of those areas to get a sense of what industries are receiving help. More general variables such as patents and leasing rates may help you. The neoclassical paradigm throws technological influence in the residual, which modern growth tries to disaggreate into human capital, education, technology etc. Maybe you can look at how the technologial component alone changes over time. I am aware of some effort in undeverloped areas that are using measures as the number of telephones hookup per say 1000 population as a direct measure of technological diffusion. Good luck in your research.
Nowadays, social networking sites are relied upon to promote products, so it is possible to rely on monetary indicators through the amount of money paid to achieve this.
Best Regards
Dear Afnan,
I attach an article I co-authored where I use telecom data for capital. It gives the equation and table of results. You might notice that the the Ged rather that the Solow model give us better results. Hope it makes clearer what I communicated in my comments.
Good luck in your research
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