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Trade and Technology Progress: An Analysis for Uruguay

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  • Adriana Peluffo

    ()
    (Universidad de la República, Instituto de Economía)

Abstract

We examine technology spillovers to Uruguayan manufacturing firms through imports, foreign direct investment (FDI) and learning by exporting, for the period 1997-2001. This work provides evidence of the dynamic gains from trade openness for a small developing country, analysing simultaneously the various possible channels of international technology diffusion at the firm level. We find evidence of positive effects on production of imported intermediates and backward linkages with foreign firms. On the other hand there is evidence of negative effects of multinational presence at the industry level, while results for exporting are mixed. Finally, the results would indicate that absorptive capacity matters to take advantage of increased openness and FDI, so policies aimed to improve absorptive capacity such as investing in R&D and improving the skills of workers through training are likely to play a role in facilitating knowledge spillovers.

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File URL: http://ief.eco.unc.edu.ar/files/publicaciones/economiayestadistica/2008_46_n2/REyE_47n2_07_Trade.pdf
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Bibliographic Info

Article provided by Universidad Nacional de Córdoba, Facultad de Ciencias Económicas, Instituto de Economía y Finanzas in its journal Revista de Economía y Estadística.

Volume (Year): XLVI (2008)
Issue (Month): 2 (July)
Pages: 105-146

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Handle: RePEc:ief:reveye:v:46:y:2008:i:2:p:105-146

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Related research

Keywords: Trade; Technology Spillovers; Foreign Direct Investment (FDI); Learning by Exporting; Technology Transfer;

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References

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  1. Navaretti, Giorgio Barba & Tarr, David G, 2000. "International Knowledge Flows and Economic Performance: A Review of the Evidence," World Bank Economic Review, World Bank Group, World Bank Group, vol. 14(1), pages 1-15, January.
  2. Gorg, Holger & Strobl, Eric, 2001. "Multinational Companies and Productivity Spillovers: A Meta-analysis," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 111(475), pages F723-39, November.
  3. Philippe Aghion & Peter Howitt, 1997. "Endogenous Growth Theory," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262011662, December.
  4. Jan De Loecker, 2004. "Do Exports Generate Higher Productivity? Evidence from Slovenia," LICOS Discussion Papers, LICOS - Centre for Institutions and Economic Performance, KU Leuven 15104, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  5. Luis A. Rivera-Batiz & Paul M. Romer, 1990. "Economic Integration and Endogenous Growth," NBER Working Papers 3528, National Bureau of Economic Research, Inc.
  6. Yasar, Mahmut & Morrison Paul, Catherine J., 2007. "International linkages and productivity at the plant level: Foreign direct investment, exports, imports and licensing," Journal of International Economics, Elsevier, Elsevier, vol. 71(2), pages 373-388, April.
  7. Aitken, Brian & Hanson, Gordon H. & Harrison, Ann E., 1997. "Spillovers, foreign investment, and export behavior," Journal of International Economics, Elsevier, Elsevier, vol. 43(1-2), pages 103-132, August.
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