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

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  • Thomas Barnebeck Andersen
  • Carl-Johan Dalgaard

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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Bibliographic Info

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
Date of revision:
Handle: RePEc:deg:conpap:c011_006

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Keywords: Technology diffusion; Productivity; IV estimation;

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Citations

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Cited by:
  1. Paola Barrientos, 2007. "Theory, History and Evidence of Economic Convergence in Latin America," Development Research Working Paper Series 13/2007, Institute for Advanced Development Studies.
  2. Carl-Johan, Dalgaard & Henrik, Hansen, 2010. "Evaluating Aid Effectiveness in the Aggregate: A critical assessment of the evidence," MPRA Paper 23026, University Library of Munich, Germany.
  3. Abbott, Philip & Bentzen, Jeanet & Tarp, Finn, 2009. "Trade and Development: Lessons from Vietnam's Past Trade Agreements," World Development, Elsevier, vol. 37(2), pages 341-353, February.
  4. Strulik, Holger, 2009. "Knowledge and Growth in the Very Long-Run," Hannover Economic Papers (HEP) dp-414, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
  5. Mosahid Khan & Kul B. Luintel & Konstantinos Theodoris, 2010. "How Robust is the R&D – Productivity relationship? Evidence from OECD Countries," WIPO Economic Research Working Papers 01, World Intellectual Property Organization - Economics and Statistics Division, revised Dec 2010.
  6. Bory Seng, 2010. "The Driving Forces Underlying the Growth of Total Factor Productivity in Cambodia," TEMEP Discussion Papers 201068, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Oct 2010.

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