Education, Governance and Trade-Related Technology Diffusion in Latin America
AbstractThis paper examines the impact on TFP of North-South trade-related technology diffusion in Latin America and the Caribbean (LAC). North-South R&D flows are constructed based on industry-specific R&D in the North, North-South trade patterns, and input-output relations in the South. The main findings are: (i) Education and governance raise the level of TFP directly; and (ii) education and governance also raise TFP through their interaction with foreign R&D in R&D-intensive industries. These results imply a) that potential virtuous growth cycles exist both in the level and in the growth of TFP, and b) that taking into account the interaction effects between trade, education and governance by reforming the policies simultaneously will have a greater impact on TFP.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1028.
Length: 22 pages
Date of creation: Feb 2004
Date of revision:
Publication status: published in: El Trimestre Economico, 2010, 302 (2)
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Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- I20 - Health, Education, and Welfare - - Education - - - General
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
- O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
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