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

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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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File URL: http://www.fas.nus.edu.sg/ecs/pub/wp/wp0102.pdf
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Bibliographic Info

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
Date of revision:
Handle: RePEc:nus:nusewp:wp0102

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  1. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
  2. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert Vishny, 1998. "The Quality of Goverment," NBER Working Papers 6727, National Bureau of Economic Research, Inc.
  3. Portes, Richard & Rey, Hélène, 2000. "The Determinants of Cross-Border Equity Flows: The Geography of Information," Center for International and Development Economics Research, Working Paper Series qt51w4v95p, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
  4. Romer, Paul, 1993. "Idea gaps and object gaps in economic development," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 543-573, December.
  5. 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.
  6. 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.
  7. Wei-Kang WONG, 2001. "The Channels of Economic Growth: A Channel Decomposition Exercise," Departmental Working Papers wp0101, National University of Singapore, Department of Economics.
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