Neighbors and the Evolution of the Comparative Advantage of Nations: Evidence of International Knowledge Diffusion?
AbstractThe literature on knowledge diffusion shows that knowledge decays strongly with distance. In this paper we document that the probability a product is added to a countryâ€™s export basket is, on average, 65% larger if a neighboring country is a successful exporter of that same product. For existing products, growth of exports in a country is 1.5 percent higher per annum if it has a neighbor with comparative advantage in these products. While these results could be driven by a common third factor that escapes our controls, they align with our expectations of the localized character of knowledge diffusion.
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Bibliographic InfoPaper provided by Harvard University OpenScholar in its series Working Paper with number 97671.
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- Bahar, Dany & Hausmann, Ricardo & Hidalgo, Cesar A., 2014. "Neighbors and the evolution of the comparative advantage of nations: Evidence of international knowledge diffusion?," Journal of International Economics, Elsevier, vol. 92(1), pages 111-123.
- Bahar, Dany & Hausmann, Ricardo & Hidalgo, Cesar A., 2013. "Neighbors and the Evolution of the Comparative Advantage of Nations: Evidence of International Knowledge Diffusion?," Working Paper Series rwp13-025, Harvard University, John F. Kennedy School of Government.
- F10 - International Economics - - Trade - - - General
- F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
- F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-12-15 (All new papers)
- NEP-CWA-2013-12-15 (Central & Western Asia)
- NEP-INT-2013-12-15 (International Trade)
- NEP-KNM-2013-12-15 (Knowledge Management & Knowledge Economy)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- How distance is important for knowledge diffusion and exports
by UDADISI in UDADISI on 2013-10-20 13:45:00
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