Who Leads and Who Lags? Technology Diffusion, eCommerce and Trade Facilitation in a Model of Northern Hub vis-a-vis Southern Spokes

In this paper, advanced economies are aggregated into North whereas South comprises the less advanced ones. Trade induced technology diffusion is source of enriched technological contents. We also consider two scenarios, (i.Hub and spokes [HAS]) the North establishes separate bilateral FTAs with each South; and (ii.FTASS) Southern economies jointly establish a fullfledged FTA with North. Simulations confirm that: (i) North South and South-South tradeled technology diffusion induces TFP growth; (ii) relatively less developed South catches up; (iii) three regions experience welfare improvement; and (iv) ITenabled Ecommerce facilitate trade. Public policies play role in catalyzing international competitiveness, innovativeness and absorption