The Regional Dimension of North-South Trade-Related R&D Spillovers
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 ÃÂ¢ÃÂÃÂnatural trading partnersÃÂ¢ÃÂÃÂ hypothesis holds for these countries.
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- Schiff, Maurice, 1999.
"Will the real"natural trading partner"please stand up?,"
Policy Research Working Paper Series
2161, The World Bank.
- Schiff, Maurice, 2001. "Will the Real “Natural Trading Partner” Please Stand Up?," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 16, pages 245-261.
- 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.
- Pravin Krishna, 2003. "Are Regional Trading Partners "Natural"?," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 202-231, February.
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