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Cross-Border Flows of People, Technology Diffusion and Aggregate Productivity

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Author Info
Thomas Barnebeck Andersen
Carl-Johan Dalgaard

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Abstract

A number of empirical studies have investigated the hypothesis that cross-border flows of goods (international trade) and capital (FDI) lead to international technology diffusion. The contribution of the present paper consists in examining an as yet neglected vehicle for technology diffusion: cross-border flows of people. We find that increasing the intensity of international travel, for the purpose of business and otherwise, by 1% increases the level of aggregate total factor productivity and GDP per worker by roughly 0.2%.

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File URL: http://www.degit.ifw-kiel.de/papers/degit_11/C011_006.pdf
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Paper provided by DEGIT, Dynamics, Economic Growth, and International Trade in its series DEGIT Conference Papers with number c011_006.

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Length: 31 pages JEL Classification: O33, O47, C21
Date of creation: Jun 2006
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Handle: RePEc:deg:conpap:c011_006

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Related research
Keywords: Technology diffusion; Productivity; IV estimation;

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  20. Douglas Gollin, 2002. "Getting Income Shares Right," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 458-474, April. [Downloadable!] (restricted)
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  21. Richard R. Nelson & Edmond S. Phelps, 1965. "Investment in Humans, Technological Diffusion and Economic Growth," Cowles Foundation Discussion Papers 189, Cowles Foundation, Yale University. [Downloadable!]
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