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

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  • Maurice Schiff
  • Yanling Wang

Abstract

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.

Suggested Citation

  • Maurice Schiff & Yanling Wang, 2008. "North-South and South-South Trade-Related Technology Diffusion: How Important Are They in Improving TFP Growth?," Journal of Development Studies, Taylor & Francis Journals, vol. 44(1), pages 49-59.
  • Handle: RePEc:taf:jdevst:v:44:y:2008:i:1:p:49-59 DOI: 10.1080/00220380701722282
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    Cited by:

    1. Anis Omri & Amel Sassi-Tmar, 2015. "Linking FDI Inflows to Economic Growth in North African Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(1), pages 90-104, March.
    2. Omar S. Dahi & Firat Demir, 2013. "Preferential trade agreements and manufactured goods exports: does it matter whom you PTA with?," Applied Economics, Taylor & Francis Journals, vol. 45(34), pages 4754-4772, December.
    3. Suyanto, & Salim, Ruhul & Bloch, Harry, 2014. "Which firms benefit from foreign direct investment? Empirical evidence from Indonesian manufacturing," Journal of Asian Economics, Elsevier, vol. 33(C), pages 16-29.
    4. Dierk Herzer & Oliver Morrissey, "undated". "The Long-Run Effect of Aid on Domestic Output," Discussion Papers 09/01, University of Nottingham, CREDIT.
    5. Suyanto & Salim, Ruhul A. & Bloch, Harry, 2009. "Does Foreign Direct Investment Lead to Productivity Spillovers? Firm Level Evidence from Indonesia," World Development, Elsevier, vol. 37(12), pages 1861-1876, December.
    6. World Bank, 2012. "Kazakhstan : Assessment of Costs and Benefits of the Customs," World Bank Other Operational Studies 12299, The World Bank.
    7. repec:hal:journl:halshs-00825816 is not listed on IDEAS
    8. Kim, Hyuk-Hwang & Lee, Hongshik & Lee, Joonhyung, 2015. "Technology diffusion and host–country productivity in South-South FDI flows," Japan and the World Economy, Elsevier, vol. 33(C), pages 1-10.
    9. Jaanika Meriküll & Helen Poltimäe & Tiiu Paas, 2011. "Regional Technology Spillovers: The Case of Central and Eastern European Countries," ERSA conference papers ersa10p931, European Regional Science Association.
    10. Kuzyaeva, Anastasia & Didenko, Alexander, 2014. "Productivity Spillovers in the Russian Federation: The Case of Chemical Market," MPRA Paper 59349, University Library of Munich, Germany.
    11. repec:ipg:wpaper:2014-558 is not listed on IDEAS
    12. International Monetary Fund, 2015. "Republic of Estonia; Selected Issues," IMF Staff Country Reports 15/337, International Monetary Fund.
    13. Schiff, Maurice & Wang, Yanling, 2009. "North-South Trade-related Technology Diffusion, Brain Drain and Productivity Growth: Are Small States Different?," Policy Research Working Paper Series 4828, The World Bank.
    14. Dragomir Sundac & Irena Fatur Krmpotic, 2011. "Knowledge Economy Factors and the Development of Knowledge-based Economy," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 13(1), pages 105-141, April.
    15. Giscard Assoumou Ella, 2013. "Impact of international income, prices and monetary shocks on real exchange rate in eight African economies: An empirical study," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 2(3), pages 41-54, September.
    16. Yanling Wang, 2010. "Exposure to FDI and New Plant Survival: Evidence in Canada," Carleton Economic Papers 10-05, Carleton University, Department of Economics.
    17. World Bank, 2012. "Assessment of Costs and Benefits of the Customs Union for Kazakhstan," World Bank Other Operational Studies 2722, The World Bank.

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