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Education, Governance, Trade and Distance: Impact on Technology Diffusion and the East Asia-Latin America Productivity Gap

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  • Schiff, Maurice

    () (World Bank)

Abstract

This paper examines the impact of education, trade, governance and distance on technology diffusion and TFP in Latin America – specifically South America and Mexico (SAM) – and East Asia, over the 32 years preceding the Great Recession (1976–2007). Findings are: i) TFP rises with education, trade, governance (ETG) and trade's R&D content, and falls with distance to the (closest) North; ii) the East Asia – SAM education gap's impact equals that of trade plus governance; iii) an increase in SAM's ETG to East Asia's level raises TFP by over 100 percent and fully accounts for its TFP gap with East Asia; and iv) South America's TFP loss relative to Mexico due to its greater distance to 'US–Canada' (Europe and Japan) is 9.30 (0.02) percent.

Suggested Citation

  • Schiff, Maurice, 2017. "Education, Governance, Trade and Distance: Impact on Technology Diffusion and the East Asia-Latin America Productivity Gap," IZA Discussion Papers 10843, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp10843
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    References listed on IDEAS

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    1. Alwyn Young, 1995. "The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 641-680.
    2. 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, Canadian Economics Association, vol. 39(3), pages 831-844, August.
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    More about this item

    Keywords

    East Asia and LAC; technology diffusion; productivity; education; trade; governance; distance;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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