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Education, Governance and Trade-Related Technology Diffusion in Latin America

Author

Listed:
  • Schiff, Maurice

    (World Bank)

  • Wang, Yanling

    (Carleton University)

Abstract

This 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.

Suggested Citation

  • Schiff, Maurice & Wang, Yanling, 2004. "Education, Governance and Trade-Related Technology Diffusion in Latin America," IZA Discussion Papers 1028, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1028
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    File URL: https://docs.iza.org/dp1028.pdf
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    References listed on IDEAS

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    1. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May.
    2. Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander W, 1997. "North-South R&D Spillovers," Economic Journal, Royal Economic Society, vol. 107(440), pages 134-149, January.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Oussama Elkhalfi & Rachid Chaabita & Kamal Zahraoui & Hicham El Alaoui, 2023. "Public Spending on Human Capital and Economic Growth in Morocco," International Journal of Economics and Financial Issues, Econjournals, vol. 13(4), pages 102-110, July.
    2. Gouranga Gopal Das, 2008. "Does trade and technology transmission facilitate convergence? The role of technology adoption in reducing the inequality of nations," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 11(1), pages 67-92.
    3. Gouranga Gopal Das & Soamiely Andriamananjara, 2006. "Hub-and-Spokes Free Trade Agreements in the Presence of Technology Spillovers: An Application to the Western Hemisphere," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(1), pages 33-66, April.
    4. Siddique, Hafiz Muhammad Abubakar & Shehzadi, Iram & Shaheen, Asma & Manzoor, 4Muhammad Rizwan, 2016. "The impact of governance and institutions on education and poverty alleviation: a panel study of SAARC economies," MPRA Paper 71248, University Library of Munich, Germany, revised 2016.
    5. Indunil De Silva & Sudarno Sumarto, 2015. "Dynamics Of Growth, Poverty And Human Capital: Evidence From Indonesian Sub-National Data," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 40(2), pages 1-33, June.
    6. Boopen SEETANAH & viraiyan teeroovengadum, 2017. "Higher Education and Economic Growth: Evidence from Africa," Proceedings of Economics and Finance Conferences 4807254, International Institute of Social and Economic Sciences.
    7. Gouranga Gopal Das, 2008. "Does trade and technology transmission facilitate convergence? The role of technology adoption in reducing the inequality of nations," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 11(1), pages 67-92.
    8. Josef C. Brada & El-hadj Bah, 2014. "Growing Income Inequality as a Challenge to 21st Century Capitalism," a/ Working Papers Series 1402, Italian Association for the Study of Economic Asymmetries, Rome (Italy).
    9. Zhao Li & Yujing Chu & Hang Fang, 2022. "Hierarchical Education Investment and Economic Growth in China," SAGE Open, , vol. 12(2), pages 21582440221, June.
    10. Das, Gouranga, 2008. "Technology Diffusion, E-commerce and Trade Facilitation in a model of Northern hub vis-à-vis Southern spokes -A Tale of Two Souths," Conference papers 330241, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. Jalil, Abdul & Idrees, Muhammad, 2013. "Modeling the impact of education on the economic growth: Evidence from aggregated and disaggregated time series data of Pakistan," Economic Modelling, Elsevier, vol. 31(C), pages 383-388.

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    More about this item

    Keywords

    technology diffusion; trade; R&D intensity; education; governance; Latin America;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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