Diaspora Externalities and Technology Diffusion
AbstractThe aim of this paper is to highlight the positive and important role that skilled migration can have on TFP growth in the sendind countries, when diaspora effects in technology diffusion are introduced. To investigate our issue, we start from a previous paper by Vandenbussche, Aghion and Costa Methir (2006), in which they examine the contribution of human capital to economic growth, where technological improvements are a result of a combination between innovation and imitation. Considering the impact of a positive externality on growth due to skilled migration, we show that a marginal increase in the stock of skilled human capital contributes more to productivity growth if a state is closer to the technological frontier and migration should raise growth in area from the frontier. Also, we provide evidence in favour of this prediction by using a panel dataset covering 92 countries between 1980 and 2000. Even if our empirical study has a lot of shortcomings, given the small number of countries and of time periods due to the current availability of data in the existing cross-country datasets, this works is the first one that attempt to investigate the relationship between growth and networks externalities, underlying the importance of the skilled diaspora in the transfer of ideas.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Département des Sciences Economiques in its series Discussion Papers (ECON - Département des Sciences Economiques) with number 2008008.
Date of creation: 01 Feb 2008
Date of revision:
Economic growth; Imitation; Innovation; Migration; Brain drain; Diaspora;
Other versions of this item:
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-11 (All new papers)
- NEP-KNM-2008-11-11 (Knowledge Management & Knowledge Economy)
- NEP-MIG-2008-11-11 (Economics of Human Migration)
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