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North-South and South-South Trade-Related Technology Diffusion: An Industry Level Analysis

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Author Info
Olarreaga, Marcelo
Schiff, Maurice
Wang, Yanling

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Abstract

This Paper examines the impact on TFP of North-South and South-South trade-related R&D spillovers. It is the first, as far as we know, to do so at the industry level for developing countries. North-South and South-South R&D flows are constructed based on industry-specific R&D in the North, North-South and South-South trade patterns, and input-output relations in the South. The main findings are: i) North-South and South-South R&D flows have a positive impact on TFP, though the former is larger; and ii) R&D-intensive industries benefit mainly from North-South R&D flows while low R&D-intensity industries benefit mainly from South-South R&D flows. These results have implications for the productivity dynamics of North-South and South-South regional integration.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3711.

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Date of creation: Jan 2003
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Handle: RePEc:cpr:ceprdp:3711

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Keywords: developing countries technology diffusion trade

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F01 - International Economics - - General - - - Global Outlook

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October. [Downloadable!] (restricted)
  2. Eaton, Jonathan & Kortum, Samuel, 1999. "International Technology Diffusion: Theory and Measurement," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(3), pages 537-70, August.
  3. Grossman, Gene M & Helpman, Elhanan, 1990. "Comparative Advantage and Long-run Growth," American Economic Review, American Economic Association, vol. 80(4), pages 796-815, September. [Downloadable!] (restricted)
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  4. Keller, Wolfgang, 1998. "Are international R&D spillovers trade-related?: Analyzing spillovers among randomly matched trade partners," European Economic Review, Elsevier, vol. 42(8), pages 1469-1481, September. [Downloadable!] (restricted)
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  5. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May. [Downloadable!] (restricted)
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  6. Lumenga-Neso, Olivier & Olarreaga, Marcelo & Schiff, Maurice, 2001. "On"indirect"trade-related research and development spillovers," Policy Research Working Paper Series 2580, The World Bank. [Downloadable!]
  7. Robert E. Lucas, Jr., 1989. "On the Mechanics of Economic Development," NBER Reprints 1176, National Bureau of Economic Research, Inc.
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  8. Andrew Levin & Chien-Fu Lin, 1992. "Unit Root Tests in Panel Data: Asymptotic and Finite-Sample Properties," University of California at San Diego, Economics Working Paper Series 92-23, Department of Economics, UC San Diego. [Downloadable!]
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  9. Andrew Levin & Chien-Fu Lin, 1993. "Unit Root Tests in Panel Data: New Results," University of California at San Diego, Economics Working Paper Series 93-56, Department of Economics, UC San Diego. [Downloadable!]
  10. Redding, Stephen, 1999. "Dynamic Comparative Advantage and the Welfare Effects of Trade," Oxford Economic Papers, Oxford University Press, vol. 51(1), pages 15-39, January.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Maurice Schiff & Yanling Wang, 2004. "Regional Integration And North-South Technology Diffusion: The Case of Nafta," Working Papers Central Bank of Chile 283, Central Bank of Chile. [Downloadable!]
  2. Hoekman, Bernard & Smarzynska Javorcik, Beata, 2004. "Policies facilitating firm adjustment to globalization," Policy Research Working Paper Series 3441, The World Bank. [Downloadable!]
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  3. Hoekman, Bernard M. & Maskus, Keith E. & Saggi, Kamal, 2004. "Transfer of technology to developing countries : unilateral and multilateral policy options," Policy Research Working Paper Series 3332, The World Bank. [Downloadable!]
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  4. Schiff, Maurice & Wang, Yanling, 2003. "Regional integration and technology diffusion : the case of the North America free trade agreement," Policy Research Working Paper Series 3132, The World Bank. [Downloadable!]
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