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The Schengen Area and Technology Diffusion

Wrangberg, Philip LU (2016) NEKH02 20161
Department of Economics
Abstract
The technological level of a country is known to have a significant impact on the economic growth of the region. Technology specifically is what drives the progression of productivity. The concept of technology diffusion addresses the phenomenon of countries adopting and using new technology. This paper aims to address the issue of whether the Schengen Area has influenced the technology diffusion within member states and if so, in what way. The Total Factor Productivity (TFP) level of a country is used as a measure of the technological level. Previous studies have highlighted the importance of the TFP gap as well as the TFP growth rate at the frontier with regards to technology diffusion. Panel data is collected and empirically studied... (More)
The technological level of a country is known to have a significant impact on the economic growth of the region. Technology specifically is what drives the progression of productivity. The concept of technology diffusion addresses the phenomenon of countries adopting and using new technology. This paper aims to address the issue of whether the Schengen Area has influenced the technology diffusion within member states and if so, in what way. The Total Factor Productivity (TFP) level of a country is used as a measure of the technological level. Previous studies have highlighted the importance of the TFP gap as well as the TFP growth rate at the frontier with regards to technology diffusion. Panel data is collected and empirically studied using methods established in previous studies. Apart from the two mentioned variables, the roles of Information and Communication Technologies (ICT), Research and Development (R&D), and high-skilled human capital are also considered in order to give a more holistic view of the determinants of the diffusion of technology. The results in this paper confirm to a large extent the work of previous studies. Both the TFP gap and the TFP growth rate at the frontier are found to positively correlate with the TFP growth rate of a country. The impact of the Schengen Area on technology diffusion is however less conclusive. The results indicate that the Area to some extent may affect the diffusion of technologies. It is therefore unwise to disregard Schengen and the role it plays. Further research is recommendable. (Less)
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author
Wrangberg, Philip LU
supervisor
organization
course
NEKH02 20161
year
type
M2 - Bachelor Degree
subject
keywords
Schengen, Technology diffusion, Total Factor Productivity, Economic growth
language
English
id
8876084
date added to LUP
2016-06-22 12:30:53
date last changed
2016-06-22 12:30:53
@misc{8876084,
  abstract     = {The technological level of a country is known to have a significant impact on the economic growth of the region. Technology specifically is what drives the progression of productivity. The concept of technology diffusion addresses the phenomenon of countries adopting and using new technology. This paper aims to address the issue of whether the Schengen Area has influenced the technology diffusion within member states and if so, in what way. The Total Factor Productivity (TFP) level of a country is used as a measure of the technological level. Previous studies have highlighted the importance of the TFP gap as well as the TFP growth rate at the frontier with regards to technology diffusion. Panel data is collected and empirically studied using methods established in previous studies. Apart from the two mentioned variables, the roles of Information and Communication Technologies (ICT), Research and Development (R&D), and high-skilled human capital are also considered in order to give a more holistic view of the determinants of the diffusion of technology. The results in this paper confirm to a large extent the work of previous studies. Both the TFP gap and the TFP growth rate at the frontier are found to positively correlate with the TFP growth rate of a country. The impact of the Schengen Area on technology diffusion is however less conclusive. The results indicate that the Area to some extent may affect the diffusion of technologies. It is therefore unwise to disregard Schengen and the role it plays. Further research is recommendable.},
  author       = {Wrangberg, Philip},
  keyword      = {Schengen,Technology diffusion,Total Factor Productivity,Economic growth},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Schengen Area and Technology Diffusion},
  year         = {2016},
}