IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/1359.html

Technological Convergence and International Trade

Author

Listed:
  • Ben-David, Dan

Abstract

This paper builds on earlier evidence showing that, while most countries exhibit little evidence of unconditional income convergence, countries that trade heavily with one another tend to exhibit a much higher incidence of convergence. Two alternative explanations for the trade-related convergence are explored here. The first alternative is that the trade-related income convergence is due to a convergence in capital-labour ratios. Little support is found for this explanation. The other alternative examined here is that of a trade-related convergence in technologies. This alternative is corroborated by a high incidence of convergence in total factor productivities among countries that trade heavily with one another – an outcome that is not common between these same countries when they are grouped randomly rather than on the basis of trade.

Suggested Citation

  • Ben-David, Dan, 1996. "Technological Convergence and International Trade," CEPR Discussion Papers 1359, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:1359
    as

    Download full text from publisher

    File URL: http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=1359
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Frankel, Jeffrey, 2004. "Real Convergence and Euro Adoption in Central and Eastern Europe: Trade and Business Cycle Correlations as Endogenous Criteria for Joining EMU," Working Paper Series rwp04-039, Harvard University, John F. Kennedy School of Government.
    2. Hamrouni, Daghbagi, 2022. "International diffusion of knowledge labor productivity and catching up between North and South," International Review of Economics & Finance, Elsevier, vol. 77(C), pages 170-178.
    3. Connolly, Michelle, 1999. "North-South Technological Diffusion: A New Case for Dynamic Gains from Trade," Working Papers 99-08, Duke University, Department of Economics.
    4. Nasfi Fkili Wahiba, 2015. "Convergence and Divergence among Countries," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(3), pages 510-520, March.
    5. Devasmita Jena & Alokesh Barua, "undated". "Does Trade, Structural Transformation and Income Convergence: Empirical Evidence from the EU and the ASEAN," Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers 18-04, Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India.
    6. Michelle P. Connolly & Diego Valderrama, 2005. "North-South Technological Diffusion and Dynamic Gains from Trade," Working Paper Series 2004-24, Federal Reserve Bank of San Francisco.
    7. Haukioja, Teemu & Hahl, Jarmo, 2001. "The Emergence of the New Economy, and its Challenge to Financial Intermediation and Banking," Discussion Papers 772, The Research Institute of the Finnish Economy.
    8. Florence Bouvet, 2010. "EMU and the dynamics of regional per capita income inequality in Europe," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(3), pages 323-344, September.
    9. Connolly, Michelle, 2003. "The dual nature of trade: measuring its impact on imitation and growth," Journal of Development Economics, Elsevier, vol. 72(1), pages 31-55, October.
    10. Kaitila, Ville, 2004. "Integration and Conditional Convergence in the Enlarged EU Area," Discussion Papers 935, The Research Institute of the Finnish Economy.
    11. Michelle P. Connolly, 1997. "Technological diffusion through trade and imitation," Staff Reports 20, Federal Reserve Bank of New York.
    12. Michelle P. Connolly, 1998. "The dual nature of trade: measuring its impact on imitation and growth," Staff Reports 44, Federal Reserve Bank of New York.
    13. Jürgen Blazejczak (Hrsg.), 1998. "Zukunftsgestaltung ohne Wirtschaftswachstum?: Ergebnisse eines Workshops des DIW im Auftrag von Greenpeace Deutschland," Discussion Papers of DIW Berlin 168, DIW Berlin, German Institute for Economic Research.
    14. Kadigi, Reuben M.J. & Robinson, Elizabeth & Szabo, Sylvia & Kangile, Joseph & Mgeni, Charles P. & De Maria, Marcello & Tsusaka, Takuji & Nhau, Brighton, 2022. "Revisiting the Solow-Swan model of income convergence in the context of coffee producing and re-exporting countries in the world," LSE Research Online Documents on Economics 115636, London School of Economics and Political Science, LSE Library.
    15. Alicia N. Rambaldi & Kam Ki Tang & G. Iyer Krishnai, 2004. "Measuring Spillovers from Alternative Forms of Foreign Investment," CEPA Working Papers Series WP012004, School of Economics, University of Queensland, Australia.
    16. Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 112-156, March.
    17. Juncal Cunado, "undated". "Convergencia real o acercamiento cíclico? Espana y la Unión Europea," Studies on the Spanish Economy 57, FEDEA.
    18. Kaitila, Ville, 2003. "Convergence of Real GDP per Capita in the EU15 area: How do the Accession Countries Fit in ?," Discussion Papers 865, The Research Institute of the Finnish Economy.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:1359. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.