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Global Knowledge and Local Inequality - Industry Level Evidence

  • Ahmed S. Rahman

    ()

    (United States Naval Academy)

This paper attempts to ascertain if skill-biased technologies developed in R&D-active countries diffuse to the rest of the world. First, using a model of international trade, I show the effects of skill-bias knowledge diffusion. The theory suggests that skill-biased technological diffusion need not increase skill premia, as sectoral biases can exert countervailing forces. Second, I test implications from the theory using United Nations industry data. Skill-biased knowledge diffusion tends to be associated with rising local skill-premia more in skill-intensive industries than unskill-intensive ones. Thus sectoral biases can help us see the extent of such technological spillovers.

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File URL: http://www.usna.edu/EconDept/RePEc/usn/wp/usnawp18.pdf
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Paper provided by United States Naval Academy Department of Economics in its series Departmental Working Papers with number 18.

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Length: 31 pages
Date of creation: Jul 2007
Date of revision:
Handle: RePEc:usn:usnawp:18
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