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Trade and Technology Progress: An Analysis for Uruguay

Author

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  • Adriana Peluffo

    () (Universidad de la República, Instituto de Economía)

Abstract

We examine technology spillovers to Uruguayan manufacturing firms through imports, foreign direct investment (FDI) and learning by exporting, for the period 1997-2001. This work provides evidence of the dynamic gains from trade openness for a small developing country, analysing simultaneously the various possible channels of international technology diffusion at the firm level. We find evidence of positive effects on production of imported intermediates and backward linkages with foreign firms. On the other hand there is evidence of negative effects of multinational presence at the industry level, while results for exporting are mixed. Finally, the results would indicate that absorptive capacity matters to take advantage of increased openness and FDI, so policies aimed to improve absorptive capacity such as investing in R&D and improving the skills of workers through training are likely to play a role in facilitating knowledge spillovers.

Suggested Citation

  • Adriana Peluffo, 2008. "Trade and Technology Progress: An Analysis for Uruguay," Revista de Economía y Estadística, Universidad Nacional de Córdoba, Facultad de Ciencias Económicas, Instituto de Economía y Finanzas, vol. 0(2), pages 105-146, July.
  • Handle: RePEc:ief:reveye:v:46:y:2008:i:2:p:105-146
    as

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    File URL: http://ief.eco.unc.edu.ar/files/publicaciones/economiayestadistica/2008_46_n2/REyE_47n2_07_Trade.pdf
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    References listed on IDEAS

    as
    1. Aitken, Brian & Hanson, Gordon H. & Harrison, Ann E., 1997. "Spillovers, foreign investment, and export behavior," Journal of International Economics, Elsevier, vol. 43(1-2), pages 103-132, August.
    2. repec:wsi:wschap:9789814749237_0008 is not listed on IDEAS
    3. Luis A. Rivera-Batiz & Paul M. Romer, 1991. "Economic Integration and Endogenous Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 531-555.
    4. Yasar, Mahmut & Morrison Paul, Catherine J., 2007. "International linkages and productivity at the plant level: Foreign direct investment, exports, imports and licensing," Journal of International Economics, Elsevier, vol. 71(2), pages 373-388, April.
    5. repec:wsi:wschap:9789813108448_0006 is not listed on IDEAS
    6. Giorgio Barba Navaretti & David G. Tarr, 2017. "International Knowledge Flows and Economic Performance: A Review of the Evidence," World Scientific Book Chapters,in: Trade Policies for Development and Transition, chapter 6, pages 129-143 World Scientific Publishing Co. Pte. Ltd..
    7. De Loecker, Jan, 2007. "Do exports generate higher productivity? Evidence from Slovenia," Journal of International Economics, Elsevier, vol. 73(1), pages 69-98, September.
    8. Gorg, Holger & Strobl, Eric, 2001. "Multinational Companies and Productivity Spillovers: A Meta-analysis," Economic Journal, Royal Economic Society, vol. 111(475), pages 723-739, November.
    9. Philippe Aghion & Peter Howitt, 1997. "Endogenous Growth Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011662, January.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Juan Barboni & Nicolas Ferrari & Hanna Melgarejo & Adriana Peluffo, 2012. "Exports and Productivity: Does Destination Matter?," Revista de Economía y Estadística, Universidad Nacional de Córdoba, Facultad de Ciencias Económicas, Instituto de Economía y Finanzas, vol. 0(1), pages 25-58, January.

    More about this item

    Keywords

    Trade; Technology Spillovers; Foreign Direct Investment (FDI); Learning by Exporting; Technology Transfer;

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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