1 Does Trade and Technology Transmission facilitate Inequality Convergence? An Inquiry into the role of Technology in reducing the Poverty of Nations By

Using a Global database, stylized evidences are presented to show that Gini coefficient of income inequality varies across skill cohorts in all the regions. Also, starting from a relatively egalitarian income distribution, growth reduces inequality for the relatively unskilled cohorts for which Gini values are comparatively lower order of magnitude than those for the skilled labors. Another sets of stylized facts show considerable outsourcing does occur especially in developing Asia and Latin America; there are evidences of rapid rise in trade in hi-tech and technology-intensive goods. All these form background for exploring the ripple effect of technology transmission, its capture and role that socio-institutional factors play on income inequality. Nexus between income inequality and technology capture is explored in a global CGE framework. In particular, we model technology spillover via trade, induced productivity growth in the recipients and structural homogeneity embodying institutional features. In particular, exogenous technology shock inducing productivity growth transmits to developing regions vehicled via trade from developed USA. This spillover capture, aided by human capital based adoptive capability, better governance and institution, causes increase i