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International Knowledge Diffusion and the Comparative Advantage of Nations

  • Bahar, Dany

    (Harvard University)

  • Hausmann, Ricardo

    (Harvard University)

  • Hidalgo, Cesar A.

    (MIT and Harvard University)

In this paper we document that the probability that a product is added to a country's export basket is, on average, 65% larger if a neighboring country is a successful exporter of that same product. We interpret our result as evidence of international intra-industry knowledge diffusion. Our results are consistent with the overall consensus in the literature on technology spillovers: diffusion is stronger at shorter distances; is weaker for more knowledge-intensive products; and has become faster over time.

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Paper provided by Harvard University, John F. Kennedy School of Government in its series Working Paper Series with number rwp12-020.

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Date of creation: May 2012
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Handle: RePEc:ecl:harjfk:rwp12-020
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