Global Knowledge and Local Inequality - Industry Level Evidence
AbstractThis paper attempts to ascertain if skill-biased technologies developed in R&D-active countries diffuse to the rest of the world. First, using a model of international trade, I show the effects of skill-bias knowledge diffusion. The theory suggests that skill-biased technological diffusion need not increase skill premia, as sectoral biases can exert countervailing forces. Second, I test implications from the theory using United Nations industry data. Skill-biased knowledge diffusion tends to be associated with rising local skill-premia more in skill-intensive industries than unskill-intensive ones. Thus sectoral biases can help us see the extent of such technological spillovers.
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Bibliographic InfoPaper provided by United States Naval Academy Department of Economics in its series Departmental Working Papers with number 18.
Length: 31 pages
Date of creation: Jul 2007
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-09-02 (All new papers)
- NEP-INO-2007-09-02 (Innovation)
- NEP-INT-2007-09-02 (International Trade)
- NEP-KNM-2007-09-02 (Knowledge Management & Knowledge Economy)
- NEP-TID-2007-09-02 (Technology & Industrial Dynamics)
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