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How Good Are Embodied And Disembodied Idea Flows In Bridging Income Gaps And Idea Gaps?

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Wei-Kang WONG ()

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Abstract

This paper empirically evaluates the relative importance of embodied versus disembodied idea flows in explaining income gaps and idea gaps. Trade is used as a measure of embodied idea flows and telephone call traffic a measure of disembodied flows. Since both trade and telephone traffic may be endogenous, this paper uses the geographic, linguistic, and colonial components of trade and telephone traffic as instruments to identify their effects on income and total factor productivity (TFP). The results provide little support for the embodied object models when both trade and telephone traffic are included in the regressions. Telephone traffic has a quantitatively much large effect on income per worker and TFP than trade.

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Paper provided by National University of Singapore, Department of Economics in its series Departmental Working Papers with number wp0102.

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Length: 34 pages
Date of creation: Sep 2001
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Handle: RePEc:nus:nusewp:wp0102

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Find related papers by JEL classification:
F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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  1. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," Journal of Law, Economics and Organization, Oxford University Press, vol. 15(1), pages 222-79, April.
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  2. Richard Portes and Hélène Rey., 2000. "The Determinants of Cross-Border Equity Flows: The Geography of Information," Center for International and Development Economics Research (CIDER) Working Papers C00-111, University of California at Berkeley. [Downloadable!]
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  3. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Wei-Kang WONG, 2001. "The Channels of Economic Growth: A Channel Decomposition Exercise," Departmental Working Papers wp0101, National University of Singapore, Department of Economics. [Downloadable!]
  5. Jeffrey A. Frankel & David Romer, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June. [Downloadable!] (restricted)
  6. Douglas A. Irwin & Marko Tervio, 2000. "Does Trade Raise Income? Evidence from the Twentieth Century," NBER Working Papers 7745, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Romer, Paul, 1993. "Idea gaps and object gaps in economic development," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 543-573, December. [Downloadable!] (restricted)
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This page was last updated on 2008-11-15.

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