Neighbors and the Evolution of the Comparative Advantage of Nations: Evidence of International Knowledge Diffusion?
AbstractThe literature on knowledge diffusion shows that it decays strongly with distance. 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. For existing products, having a neighbor with comparative advantage in them is associated with a growth of exports that is higher by 1.5 percent per annum. While these results could be driven by a common third factor that escapes our controls, they are what would be expected from the localized character of knowledge diffusion.
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Bibliographic InfoPaper provided by Harvard University, John F. Kennedy School of Government in its series Working Paper Series with number rwp13-025.
Date of creation: Aug 2013
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Other versions of this item:
- Bahar, Dany & Hausmann, Ricardo & Hidalgo, CÃ©sar A., . "Neighbors and the Evolution of the Comparative Advantage of Nations: Evidence of International Knowledge Diffusion?," Working Paper 97671, Harvard University OpenScholar.
- F10 - International Economics - - Trade - - - General
- F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
- F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-10-18 (All new papers)
- NEP-GEO-2013-10-18 (Economic Geography)
- NEP-KNM-2013-10-18 (Knowledge Management & Knowledge Economy)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- How distance is important for knowledge diffusion and exports
by UDADISI in UDADISI on 2013-10-20 13:45:00
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