Technology Spillover through Trade and TFP Convergence: 120 Years of Evidence for the OECD Countries
Using a new dataset on imports of technology and total factor productivity (TFP) over more than a century for the OECD countries, this paper tests for international technological transmission through trade. The empirical estimates suggest that imports of knowledge have been responsible for an almost 200% increase in TFP over the past century, but that the spillover effect has been highly unevenly distributed across countries, but has contributed to TFP convergence among the OECD countries.
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