International knowledge flows and the administrative barriers to mobility

The literature on diffusion of knowledge has shown positive influence of physical and cultural proximity, common Language and contiguity on the speed and magnitude of international knowledge flows. Knowledge diffusion is also facilitated by co-location, even temporary one, which helps researchers form personal ties and exchange tacit information through face-to-face contact. However, the ability of researchers to disseminate the results of their work, especially recent or on-going research, through temporary co-location (including international conferences, workshops and seminars) will be affected by the administrative barriers to mobility (‘paper walls’), for example travel visas. This paper uses a gravity-style empirical model to examine the link between the administrative barriers to mobility of the skilled workers (and students) and the magnitude/direction of international knowledge flows between 45 countries from 1990 to 2014. Additional calculations use information on travel visa requirements between 134 countries in year 2004. The results suggest that higher administrative barriers to mobility between countries are associated with reduced bilateral knowledge flows, especially of recent knowledge, and this negative effect can persist for about 9 years. The persistent effect of ‘paper walls’ is asymmetric and a country’s ability to import knowledge is affected more by the administrative barriers of the knowledge-exporting country, suggesting that co-location plays an important role for successful transfer of knowledge.