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Cired Seminar : Jean Mercenier (Univ. Paris 2, Cired)

par Estelle Carciofi - publié le , mis à jour le

Appropriate Technology and Barriers to Technology Adoption : Potential Implications for the European Union

Based on two strands of literature, namely the "Barriers to tech adoption" and the "Apropriate technology" literature, we propose a workable definition of "deep integration" —a concept often used in trade policy discussions albeit never rigorously defined— which we apply to evaluate the European 2004 enlargement. More specifically, we first estimate, using 2007 sectoral data, total labor productivity (TLP) in the 27 EU member states, and show that all new member states clearly stand below the lower-envelope tech frontier of the older members in their use of skilled and unskilled labor. We interpret this as being the result of past barriers to technology adoption that are likely to be removed by the integration process into the EU, hence shifting these new counties’ TLP to the incumbent members’ lower-envelope. We then evaluate the consequences of this "deep integration" experiment by use of an intertemporal two-period multisector calibrated GE model of the EU-27.

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