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North‐South and South‐South trade‐related technology diffusion: an industry‐level analysis of direct and indirect effects

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  • Maurice Schiff
  • Yanling Wang

Abstract

This paper examines one direct and three indirect channels of North‐South trade‐related technology diffusion. We find that i) the largest impact on TFP in the South is from direct North‐South technology diffusion; ii) there are also significant effects from indirect North‐South technology diffusion, though their magnitude is smaller than that of the direct one; and iii) the impact of direct North‐South technology diffusion on TFP in the South occurs faster than the impact of indirect technology diffusion. Ce mémoire examine un canal direct et trois canaux indirects de diffusion de la technologie reliée au commerce Nord‐Sud. On découvre que (i) le plus gros impact sur la productivité totale des facteurs (PTF) dans le Sud vient de la diffusion directe Nord‐Sud de la technologie; (ii) il y a aussi des effets significatifs de la diffusion indirecte Nord‐Sud de la technologie, mais d'une importance moins grande que les effets directs; et (iii) l'impact de la diffusion directe Nord‐Sud de la technologie sur la PTF se produit plus vite que l'impact de la diffusion indirecte.

Suggested Citation

  • Maurice Schiff & Yanling Wang, 2006. "North‐South and South‐South trade‐related technology diffusion: an industry‐level analysis of direct and indirect effects," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(3), pages 831-844, August.
  • Handle: RePEc:wly:canjec:v:39:y:2006:i:3:p:831-844
    DOI: 10.1111/j.1540-5982.2006.00372.x
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    References listed on IDEAS

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    1. Keller, Wolfgang, 2002. "Trade and the Transmission of Technology," Journal of Economic Growth, Springer, vol. 7(1), pages 5-24, March.
    2. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    3. Eaton, Jonathan & Kortum, Samuel, 1999. "International Technology Diffusion: Theory and Measurement," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(3), pages 537-570, August.
    4. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
    5. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    JEL classification:

    • F1 - International Economics - - Trade

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