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The Regional Dimension of North-South Trade-Related R&D Spillovers

  • Schiff, Maurice


    (The World Bank)

  • Wang, Yanling

    (Carleton University)

This paper examines the impact of trade with Japan, North America, and the European Union on technology diffusion and total factor productivity growth in Korea, Mexico, and Jordan. Measures of foreign research and development are constructed based on industry-specific research and development in the North, North-South trade patterns, and input-output relations in the South. The findings show that technology diffusion and productivity gains tend to be regional. Jordan benefits mainly from trade with the European Union, Korea from trade with Japan, and Mexico from trade with North America. In other words, the dynamic version of the “natural trading partners” hypothesis holds for these countries.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4826.

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Length: 21 pages
Date of creation: 01 Jan 2009
Date of revision:
Handle: RePEc:wbk:wbrwps:4826
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  1. Schiff, Maurice, 1999. "Will the real"natural trading partner"please stand up?," Policy Research Working Paper Series 2161, The World Bank.
  2. Pravin Krishna, 2003. "Are Regional Trading Partners "Natural"?," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 202-231, February.
  3. 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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