ECONOMETRIC STUDY ON THE TECHNOLOGY GAP BETWEEN KOREA AND JAPAN - THECASE OF THE GENERAL MACHINERY AND ELECTRICAL AND ELECTRONIC INDUSTRIES

This article presents an econometric model relating to the technologic al development problem of a technologically less developed country whe n there is a technology transfer from the leader (Japan) to the follow er (Korea) nation. By developing a sensitivity analysis of the followe r's development speed, the article seeks to determine the most effecti ve means of improving the technological level of the follower nation. The alternatives of independent technological development and the impo rtation of advanced technology from the leader nation are considered. The results of the study indicate that it is more effective for the fo llower to assimilate, modify, and localize the leader's technologies. The general machinery industry and the electrical and electronic indus try are examined. (C) 1997 Elsevier Science Inc.