A Model For Technology Adoption In China: Extending Caselli And Coleman

Abstract

Focusing on China, a country pushing toward a more market-oriented system at warped speed, we suggest that previous models of technology adoption and/or diffusion may not be suitable for countries migrating from centralized control. We support the work of Au and Yeung (2007), who suggest that China may suffer from a risk avoidance attitude at the firm level based on previous attitudes of control. Relying on the literature and supported by an in-depth analysis of the Chinese machine tool industry we extend the work of Caselli and Coleman (2001, 2002) and advance an expanded model of technology adoption specific to emerging markets, such as China, experiencing a transformation from centrally controlled economy toward a market one.