How Good Are Embodied And Disembodied Idea Flows In Bridging Income Gaps And Idea Gaps?
AbstractThis 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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Bibliographic InfoPaper provided by National University of Singapore, Department of Economics in its series Departmental Working Papers with number wp0102.
Length: 34 pages
Date of creation: Sep 2001
Date of revision:
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; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2001-10-29 (All new papers)
- NEP-DEV-2001-10-29 (Development)
- NEP-TID-2001-10-29 (Technology & Industrial Dynamics)
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