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North-South Technology Spillovers: The Relative Impact of Openness and Foreign R&D

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  • Maurice Schiff
  • Yanling Wang

Abstract

This paper examines the relative contribution of openness and the R&D content of trade to North-South trade-related knowledge diffusion and TFP growth. The measure of foreign R&D used in the literature on trade-related knowledge diffusion imposes identical contributions to TFP of openness and the R&D content of trade. We show that this restriction is not warranted and that openness has a greater impact on TFP than R&D. This finding is particularly strong in low R&D-intensity industries and - as might be expected - not as strong in R&D-intensive ones. The results indicate that the impact of openness on TFP in developing countries is larger than previously obtained in this literature, and that developing countries can obtain larger productivity gains from trade liberalization than previously thought.

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  • Maurice Schiff & Yanling Wang, 2010. "North-South Technology Spillovers: The Relative Impact of Openness and Foreign R&D," International Economic Journal, Taylor & Francis Journals, vol. 24(2), pages 197-207.
    • Handle: RePEc:taf:intecj:v:24:y:2010:i:2:p:197-207
    DOI: 10.1080/10168737.2010.486889
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    2. Osman, Rehab Osman Mohamed, 2012. "The EU Economic Partnership Agreements with Southern Africa: a computable general equilibrium analysis," Economics PhD Theses 0412, Department of Economics, University of Sussex Business School.
    3. Mohamed Abdouli & Sami Hammami, 2017. "The Impact of FDI Inflows and Environmental Quality on Economic Growth: an Empirical Study for the MENA Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(1), pages 254-278, March.
    4. Luh, Yir-Hueih & Jiang, Wun-Ji & Huang, Szu-Chi, 2016. "Trade-related spillovers and industrial competitiveness: Exploring the linkages for OECD countries," Economic Modelling, Elsevier, vol. 54(C), pages 309-325.
    5. Oprean Victor Bogdan, 2014. "Migration Costs in Asymmetric Environments and Education Outsourcing. The Case of Romania," Scientific Annals of Economics and Business, Sciendo, vol. 61(1), pages 1-15, July.

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    More about this item

    Keywords

    International trade; technology spillovers;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F15 - International Economics - - Trade - - - Economic Integration
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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