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International Knowledge Diffusion and the Comparative Advantage of Nations

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  • Bahar, Dany

    (Harvard University)

  • Hausmann, Ricardo

    (Harvard University)

  • Hidalgo, Cesar A.

    (MIT and Harvard University)

Abstract

In this paper we document that the probability that a product is added to a country's export basket is, on average, 65% larger if a neighboring country is a successful exporter of that same product. We interpret our result as evidence of international intra-industry knowledge diffusion. Our results are consistent with the overall consensus in the literature on technology spillovers: diffusion is stronger at shorter distances; is weaker for more knowledge-intensive products; and has become faster over time.

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Bibliographic Info

Paper provided by Harvard University, John F. Kennedy School of Government in its series Working Paper Series with number rwp12-020.

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Date of creation: May 2012
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Handle: RePEc:ecl:harjfk:rwp12-020

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  1. Paul Krugman, 1992. "Geography and Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262610868, December.
  2. Paul Romer, 1991. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
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  5. Markusen, James R. & Venables, Anthony J., 1999. "Foreign direct investment as a catalyst for industrial development," European Economic Review, Elsevier, vol. 43(2), pages 335-356, February.
  6. Rivera-Batiz, Luis A & Romer, Paul M, 1991. "Economic Integration and Endogenous Growth," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 531-55, May.
  7. Luis A. Rivera-Batiz & Paul M. Romer, 1992. "International Trade with Endogenous Technological Change," NBER Working Papers 3594, National Bureau of Economic Research, Inc.
  8. Rodrik, Dani, 1996. "Coordination failures and government policy: A model with applications to East Asia and Eastern Europe," Journal of International Economics, Elsevier, vol. 40(1-2), pages 1-22, February.
  9. Rodriguez-Clare, Andres, 1996. "The division of labor and economic development," Journal of Development Economics, Elsevier, vol. 49(1), pages 3-32, April.
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Cited by:
  1. Timothy J. Garrett, 2013. "Thermodynamics of long-run economic innovation and growth," Papers 1306.3554, arXiv.org.
  2. Ron Boschma & Gianluca Capone, 2014. "Relatedness and Diversification in the EU-27 and ENP countries," Papers in Evolutionary Economic Geography (PEEG) 1407, Utrecht University, Section of Economic Geography, revised Feb 2014.

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