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North-South and South-South Trade-Related Technology Diffusion: How Important Are They in Improving TFP Growth?

  • Maurice Schiff
  • Yanling Wang

This paper examines the impact on total factor productivity (TFP) growth in the South of North-South and South-South trade-related technology diffusion and of foreign direct investment (FDI). North-South and South-South trade-related research and development (R&D) stocks are constructed based on industry-specific R&D in the North, North-South and South-South trade patterns, and input-output relations in the South. The main findings are: 1. Both North-South and South-South trade-related R&D have a positive impact on TFP growth in the South; 2. FDI has a positive, though smaller, impact on TFP growth; 3. The impact on TFP growth of trade-related technology diffusion increases with the level of education in the case of North-South trade but not in the case of South-South trade.

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Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 44 (2008)
Issue (Month): 1 ()
Pages: 49-59

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Handle: RePEc:taf:jdevst:v:44:y:2008:i:1:p:49-59
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