Technological Change in Developing Countries, Efficiency, Productivity and the Economic Theory

Abstract

The current paper reviews the impacts and effects of technical transfer and change on the economic patterns of developing countries. It has been postulated that production factors, labor and capital have the greatest effects on economic and development patterns. However, technical change emerges as of prime effects on that issue. Hereby, we review theories of development here stressing impacts of technical changes on development countries as embodied and disembodied paradigms. Assessment of production and correlations with technical changes are measured by Total Factor Productivity as an expression of Technical Change presuming constant efficiency. That is one viable trend. The other is combining both Technical Change and Technical Efficiency to assess Total Factor Productivity.