Title

Economic growth and technological catching up by Singapore to the USA.

Document Type

Journal Article

Publisher

Elsevier Science

Faculty

Business and Public Management

School

Accounting, Finance and Business Economics

RAS ID

485

Comments

This article was originally published as: Lim, L. K., & McAleer, M. (2002). Economic growth and technological catching up by Singapore to the USA. Mathematics and Computers in Simulation, 59(1), 133-141. Original available here

Abstract

The high growth performance of Singapore can be attributed largely to the rapid inflows of foreign direct investment (FDI). It is generally accepted that FDI brings not only additional capital to the host country, but also the transfer of advanced technology and management skills. The catching up hypothesis states that the lagging country, with low initial income and productivity levels, will tend to grow more rapidly by copying the technology from the leader country, without having to bear the associated costs of research and development. Given the important effects of technological change on growth, this paper examines whether Singapore is catching up technologically to the technology leader (USA). The paper applies two different time series tests of technological catching up, namely the Dickey–Fuller-type unit root test and a test based on the Verspagen model. The empirical evidence suggests technological catching up by Singapore to the USA.

DOI

10.1016/S0378-4754(01)00401-3

 
COinS
 

Link to publisher version (DOI)

10.1016/S0378-4754(01)00401-3