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International Business Visits and the Technology Frontier

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Author Info

  • Dowrick, Steve

    ()
    (Australian National University)

  • Tani, Massimiliano

    ()
    (IZA)

Abstract

This paper studies the impact of international business trips on the stock of knowledge available to an economy. It develops a theoretical model to analyse the possible effects, and presents an empirical application using productivity data for a panel of twelve Australian industries during 1991/2-2005/6. Business trips emerge as a significant source of productivity growth. As the knowledge transferred through business visits is non-rival, both countries of origin and destination can gain from the human capital of travellers. As a result, even countries traditionally disadvantaged by geography, size, or level of economic development have the opportunity to access the latest technology and information to stimulate growth.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3417.

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Length: 23 pages
Date of creation: Mar 2008
Date of revision:
Publication status: published in: Economics Letters, 2011, 110 (3), 209-212
Handle: RePEc:iza:izadps:dp3417

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Related research

Keywords: business trips; face-to-face meetings; international labour movements; growth; productivity;

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References

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  1. Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988, June.
  2. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-96, September.
  3. John C. Driscoll & Aart C. Kraay, 1998. "Consistent Covariance Matrix Estimation With Spatially Dependent Panel Data," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 549-560, November.
  4. Sid Shanks & Simon Zheng, 2006. "Econometric Modelling of R&D and Australia's Productivity," Staff Working Papers 0604, Productivity Commission, Government of Australia.
  5. Edward Anderson, 2007. "Travel and communication and international differences in GDP per capita," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(3), pages 315-332.
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Cited by:
  1. Hovhannisyan, Nune & Keller, Wolfgang, 2010. "International Business Travel: An Engine of Innovation?," CEPR Discussion Papers 7829, C.E.P.R. Discussion Papers.
  2. Tani, Massimiliano & Joyeux, Roselyne, 2013. "Do Business Visits Cause Productivity Growth?," IZA Discussion Papers 7827, Institute for the Study of Labor (IZA).
  3. Christiane Hellmanzik, 2013. "Does travel inspire? Evidence from the superstars of modern art," Empirical Economics, Springer, vol. 45(1), pages 281-303, August.
  4. Thomas Andersen & Carl-Johan Dalgaard, 2011. "Flows of people, flows of ideas, and the inequality of nations," Journal of Economic Growth, Springer, vol. 16(1), pages 1-32, March.

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