Expansion of policies that encourages technology transfer

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One explanation for Chinas rapid economic growth during the past several decades is its expansion of policies that encourages technology transfer. by this we mean policies such as opening up to international trade and attracting multinational corporations through various incentives that encourages the use and adoption in china of new ideas and new technologies. Suppose china begin steady state. to keep the problem simple let’s assume the sole result of these technology transfer policies is to increase A bar by a large and permanent amount, one time. use the usual two diagram combo to show what happen as a result of these policies. forst, show the main Solow graph, with output, deprecation and savings as function of CapitaLand also describe what happen in the short run and long run. Next show output over time on a ratio scale.

Reference no: EM13800487

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