Technological Transfer, Employment and Development

It is generally agreed that one of the most important factors shaping the course of development in the typical less developed country (l.d.c.) is its coexistence with developed countries and the possibility of technological transfers from the latter to the former, induced by the presence of a so-called technology gap. In practical terms, such transfers result in a modification of the ways in which the developing economy’s labour force is utilised and in major changes in its output and employment performance. Our purpose in the present paper is to attempt an analysis of such technological transfer in the context of a fairly general growth-theoretic framework.