The Study Of Technology Adoption Cost On Economy Growth Convergence

For the whole society, technology is the basic way to realize technology progress and converge to the development countries for developing countries in the global economy. Along with some developing countries'fast developing, divergence is observed also, so it is very important to improve the technology level of developing countries to converge with the development countries.First of all, basing on others, the study of economy growth convergence has been summarized, this paper analyze the effect of technology on economy growth, the way and influencing factor of technology adoption, then give the inherent mechanisms of technology cost on the simultaneous convergence and divergence. Through establishing a model of technology adoption cost affecting economy growth, this paper conclude that, technology adoption cost lead to convergence among adopting countries and divergence between these countries and the rest of the world. In the empirical study, we use the relative data of 41 countries from 1996 to 2007. The result show that technology adoption cost have a negative effect on economy growth, convergence is observed among technology adoption countries, but divergence is also observed between these countries and the rest of the world.