Publication:
Why Are Developing Countries So Slow in Adopting New Technologies? The Aggregate and Complementary Impact of Micro Distortions

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dc.contributor.authorBergoeing, Raphael
dc.contributor.authorLoayza, Norman V.
dc.contributor.authorPiguillem, Facundo
dc.date.accessioned2012-03-19T18:41:24Z
dc.date.available2012-03-19T18:41:24Z
dc.date.issued2010-08-01
dc.description.abstractThis paper explores how developmental and regulatory impediments to resource reallocation limit the ability of developing countries to adopt new technologies. An efficient economy innovates quickly; but when the economy is unable to redeploy resources away from inefficient uses, technological adoption becomes sluggish and growth is reduced. The authors build a model of heterogeneous firms and idiosyncratic shocks, where aggregate long-run growth occurs through the adoption of new technologies, which in turn requires firm destruction and rebirth. After calibrating the model to leading and developing economies, the authors analyze its dynamics in order to clarify the mechanism based on firm renewal. The analysis uses the steady-state characteristics of the model to provide an explanation for long-run output gaps between the United States and a large sample of developing countries. For the median less-developed country in the sample, the model accounts for more than 50 percent of the income gap with respect to the United States, with 60 percent of the simulated gap being explained by developmental and regulatory barriers taken individually, and 40 percent by their interaction. Thus, the benefits from market reforms are largely diminished if developmental and regulatory distortions to firm dynamics are not jointly addressed.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100803112829
dc.identifier.doi10.1596/1813-9450-5393
dc.identifier.urihttps://hdl.handle.net/10986/3877
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5393
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectABSTRACTS
dc.subjectADVANCED TECHNOLOGY
dc.subjectALLOCATION
dc.subjectASSET PRICES
dc.subjectAUTOMOBILES
dc.subjectAVERAGE PRODUCTIVITY
dc.subjectBANKRUPTCY
dc.subjectBARRIER
dc.subjectBASIC
dc.subjectBENCHMARK
dc.subjectBUREAUCRACY
dc.subjectBUSINESS ACTIVITIES
dc.subjectBUSINESS CYCLE
dc.subjectBUSINESS CYCLES
dc.subjectBUSINESS ENTRY
dc.subjectBUSINESS INDICATORS
dc.subjectBUSINESS REGULATION
dc.subjectCAPITAL ACCUMULATION
dc.subjectCAPITAL STOCK
dc.subjectCOMPONENTS
dc.subjectCONSTANT RETURNS TO SCALE
dc.subjectCONSUMERS
dc.subjectCOST OF CAPITAL
dc.subjectCOUNTRY RISK
dc.subjectCOUNTRY TO COUNTRY
dc.subjectCOVARIANCE MATRIX
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDEVELOPING ECONOMIES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDIVIDEND
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC CRISIS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC REFORMS
dc.subjectEQUILIBRIUM
dc.subjectFEDERAL RESERVE
dc.subjectFEDERAL RESERVE BANK
dc.subjectFINANCIAL SUPPORT
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGENERAL EQUILIBRIUM ANALYSIS
dc.subjectGOVERNMENT BUDGET
dc.subjectGROWTH RATE
dc.subjectGROWTH RATES
dc.subjectHUMAN CAPITAL
dc.subjectINCOME
dc.subjectINCOME LEVELS
dc.subjectINCOMES
dc.subjectINCUMBENT
dc.subjectINDEXES
dc.subjectINDUSTRIAL COUNTRIES
dc.subjectINFORMATION REVOLUTION
dc.subjectINFORMATION TECHNOLOGIES
dc.subjectINFORMATION TECHNOLOGY
dc.subjectINNOVATION
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL COMPARISONS
dc.subjectINTERNATIONAL TRADE
dc.subjectITC
dc.subjectJOB CREATION
dc.subjectJUDICIAL SYSTEM
dc.subjectLABOR MARKET
dc.subjectLEGAL SYSTEM
dc.subjectLESS DEVELOPED COUNTRIES
dc.subjectLOTTERIES
dc.subjectMACROECONOMICS
dc.subjectMANUFACTURING
dc.subjectMARGINAL PRODUCTIVITY
dc.subjectMARGINAL UTILITY
dc.subjectMARKET REGULATIONS
dc.subjectMONOPOLY
dc.subjectNET CAPITAL
dc.subjectNETWORKS
dc.subjectNEW TECHNOLOGIES
dc.subjectNEW TECHNOLOGY
dc.subjectOUTPUT GAP
dc.subjectOUTPUT GAPS
dc.subjectOUTPUT PER CAPITA
dc.subjectOUTPUT RATIOS
dc.subjectPC
dc.subjectPERSONAL COMPUTERS
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLITICAL SYSTEM
dc.subjectPOTENTIAL OUTPUT
dc.subjectPRICE CONTROLS
dc.subjectPRODUCT MARKETS
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTION GOODS
dc.subjectPRODUCTION INPUTS
dc.subjectPRODUCTION PROCESS
dc.subjectPRODUCTIVITIES
dc.subjectPRODUCTIVITY
dc.subjectPRODUCTIVITY GROWTH
dc.subjectPROFIT MAXIMIZATION
dc.subjectRANDOM WALK
dc.subjectRATE OF GROWTH
dc.subjectREAL INTEREST RATE
dc.subjectRED TAPE
dc.subjectREGRESSION ANALYSIS
dc.subjectREGULATORY IMPEDIMENTS
dc.subjectREGULATORY RESTRICTIONS
dc.subjectREPUBLIC
dc.subjectRESULT
dc.subjectRESULTS
dc.subjectSIMULATION
dc.subjectSTARTUPS
dc.subjectTAX
dc.subjectTECHNOLOGICAL ADVANCES
dc.subjectTECHNOLOGICAL INNOVATION
dc.subjectTECHNOLOGICAL INNOVATIONS
dc.subjectTELECOMMUNICATIONS
dc.subjectTHIRD WORLD
dc.subjectTOTAL FACTOR PRODUCTIVITY
dc.subjectTRANSMISSION
dc.subjectTRANSPARENCY
dc.subjectTURNOVER
dc.subjectUNEMPLOYMENT
dc.subjectUSERS
dc.subjectUSES
dc.subjectUTILITY FUNCTION
dc.subjectUTILITY FUNCTIONS
dc.subjectVOLATILITY
dc.subjectWAGES
dc.subjectWEB
dc.subjectWORLD DEVELOPMENT INDICATORS
dc.titleWhy Are Developing Countries So Slow in Adopting New Technologies? The Aggregate and Complementary Impact of Micro Distortionsen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleWhy Are Developing Countries So Slow In Adopting New Technologies ? The Aggregate And Complementary Impact Of Micro Distortions
okr.date.disclosure2010-08-30
okr.date.doiregistration2025-04-10T11:44:23.203488Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100803112829
okr.globalpracticeTrade and Competitiveness
okr.guid879761468328214173
okr.identifier.doi10.1596/1813-9450-5393
okr.identifier.externaldocumentum000158349_20100803112829
okr.identifier.internaldocumentum12611897
okr.identifier.reportWPS5393
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2010/08/03/000158349_20100803112829/Rendered/PDF/WPS5393.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.topicTechnology Industry
okr.topicIndustry
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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