IDEAS home Printed from https://ideas.repec.org/p/zbw/glodps/72.html

Trade, Education, Governance and Distance: Impact on Technology Diffusion and Productivity Growth in Asia and LAC

Author

Listed:
  • Schiff, Maurice
  • Wang, Yanling

Abstract

This paper examines the impact of North-South trade, education, governance and North-South distance, on technology diffusion and total factor productivity (TFP) growth in the South, focusing on LAC and East Asia over the 32 years before the Great Recession (1976-2007). Findings are: i) TFP rises with education, trade, governance (ETG) and imports’ R&D content, and falls with distance to the North; ii) an increase of LAC’s ETG to East Asia’s levels raises TFP by 165%, fully accounting for its TFP gap with East Asia; iii) the impact of the education gap equals the sum of the governance and openness gaps; and iv) South America’s loss of TFP relative to Mexico associated with its greater distance to US-Canada (both Europe and Japan) is 9.3 (0) percent.

Suggested Citation

  • Schiff, Maurice & Wang, Yanling, 2017. "Trade, Education, Governance and Distance: Impact on Technology Diffusion and Productivity Growth in Asia and LAC," GLO Discussion Paper Series 72, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:72
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/158014/1/GLO_DP_0072.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    2. Fumio Hayashi & Edward C. Prescott, 2002. "The 1990s in Japan: A Lost Decade," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(1), pages 206-235, January.
    3. Engelbrecht, Hans-Jurgen, 1997. "International R&D spillovers, human capital and productivity in OECD economies: An empirical investigation," European Economic Review, Elsevier, vol. 41(8), pages 1479-1488, August.
    4. Barro, Robert J, 1996. "Democracy and Growth," Journal of Economic Growth, Springer, vol. 1(1), pages 1-27, March.
    5. David Greenaway & Neil Foster, 2002. "North-South Trade, Knowledge Spillovers and Growth," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 17, pages 650-670.
    6. Paulo G. Correa & Ana M. Fernandes & Chris J. Uregian, 2010. "Technology Adoption and the Investment Climate: Firm-Level Evidence for Eastern Europe and Central Asia," The World Bank Economic Review, World Bank, vol. 24(1), pages 121-147, January.
    7. Mr. Arvind Subramanian & Mr. Francesco Trebbi & Mr. Dani Rodrik, 2002. "Institutions Rule: The Primacy of Institutions over Integration and Geography in Economic Development," IMF Working Papers 2002/189, International Monetary Fund.
    8. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    9. Talvi, Ernesto & Serra, Pablo & Birdsall, Nancy & Pack, Howard & Solimano, Andrés & Stallings, Barbara & Gavin, Michael & Sabot, Richard H. & Lustig, Nora & Petrei, Humberto & Edwards, Sebastián & Hau, 1997. "Pathways to Growth: Comparing East Asia and Latin America," IDB Publications (Books), Inter-American Development Bank, number 377, November.
    10. Hulten, Charles R, 1975. "Technical Change and the Reproducibility of Capital," American Economic Review, American Economic Association, vol. 65(5), pages 956-965, December.
    11. Ito, Takatoshi & Krueger, Anne O. (ed.), 1995. "Growth Theories in Light of the East Asian Experience," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226386706.
    12. Alwyn Young, 1995. "The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 641-680.
    13. Lei Zhu & Bang Nam Jeon, 2007. "International R&D Spillovers: Trade, FDI, and Information Technology as Spillover Channels," Review of International Economics, Wiley Blackwell, vol. 15(5), pages 955-976, November.
    14. Helpman, Elhanan, 1992. "Endogenous macroeconomic growth theory," European Economic Review, Elsevier, vol. 36(2-3), pages 237-267, April.
    15. Kenneth L. Sokoloff & Stanley L. Engerman, 2000. "Institutions, Factor Endowments, and Paths of Development in the New World," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 217-232, Summer.
    16. Jong-Il You, 1998. "Income distribution and growth in East Asia," Journal of Development Studies, Taylor & Francis Journals, vol. 34(6), pages 37-65.
    17. Takatoshi Ito & Anne O. Krueger, 1995. "Growth Theories in Light of the East Asian Experience," NBER Books, National Bureau of Economic Research, Inc, number ito_95-2, January.
    18. North, Douglass C., 1971. "Institutional Change and Economic Growth," The Journal of Economic History, Cambridge University Press, vol. 31(1), pages 118-125, March.
    19. Eaton, Jonathan & Kortum, Samuel, 1999. "International Technology Diffusion: Theory and Measurement," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(3), pages 537-570, August.
    20. repec:bla:ecorec:v:73:y:1997:i:222:p:201-11 is not listed on IDEAS
    21. Wolfgang Keller, 2002. "Geographic Localization of International Technology Diffusion," American Economic Review, American Economic Association, vol. 92(1), pages 120-142, March.
    22. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mirajul Haq & Muhammad Luqman, 2014. "The contribution of international trade to economic growth through human capital accumulation: Evidence from nine Asian countries," Cogent Economics & Finance, Taylor & Francis Journals, vol. 2(1), pages 1-13, December.
    2. Jakob B. Madsen & Md. Rabiul Islam & James B. Ang, 2010. "Catching up to the technology frontier: the dichotomy between innovation and imitation," Canadian Journal of Economics, Canadian Economics Association, vol. 43(4), pages 1389-1411, November.
    3. Goñi, Edwin & Maloney, William F., 2017. "Why don’t poor countries do R&D? Varying rates of factor returns across the development process," European Economic Review, Elsevier, vol. 94(C), pages 126-147.
    4. Andrea Fracasso & Giuseppe Vittucci Marzetti, 2013. "An empirical note on international R&D spillovers," Empirical Economics, Springer, vol. 45(1), pages 179-191, August.
    5. Ashok Chakravarti, 2012. "Institutions, Economic Performance and the Visible Hand," Books, Edward Elgar Publishing, number 14751.
    6. Y. Wu, 1997. "Productivity & Efficiency: Evidence from the Chinese regional economies," Economics Discussion / Working Papers 97-18, The University of Western Australia, Department of Economics.
    7. Gong, Guan & Keller, Wolfgang, 2003. "Convergence and polarization in global income levels: a review of recent results on the role of international technology diffusion," Research Policy, Elsevier, vol. 32(6), pages 1055-1079, June.
    8. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-72.
    9. Wu, Yanrui, 2000. "Is China's economic growth sustainable? A productivity analysis," China Economic Review, Elsevier, vol. 11(3), pages 278-296.
    10. Hans Gersbach & Lars-H. Siemers, 2014. "Can democracy induce development? A constitutional perspective," Public Choice, Springer, vol. 159(1), pages 177-196, April.
    11. Ian W. Mclean, 2004. "Australian Economic Growth in Historical Perspective," The Economic Record, The Economic Society of Australia, vol. 80(250), pages 330-345, September.
    12. Franco, Chiara & Montresor, Sandro & Vittucci Marzetti, Giuseppe, 2011. "On indirect trade-related R&D spillovers: The "Average Propagation Length" of foreign R&D," Structural Change and Economic Dynamics, Elsevier, vol. 22(3), pages 227-237, September.
    13. Antonio Cubel & Vicente Esteve & Maria Teresa Sanchis & Juan A. Sanchis-Llopis, 2014. "The effect of foreign and domestic patents on total factor productivity during the second half of the 20th century," Working Papers 06/14, Instituto Universitario de Análisis Económico y Social.
    14. Arvanitidis, Paschalis & Petrakos, George & Pavleas, Sotiris, 2007. "Determinants of economic growth: the experts’ view," Papers DYNREG20, Economic and Social Research Institute (ESRI).
    15. Edwin Goni & William F. Maloney, 2014. "Why don‚Äôt Poor Countries do R&D?," Documentos CEDE 11947, Universidad de los Andes, Facultad de Economía, CEDE.
    16. Costantini, Valeria & Liberati, Paolo, 2014. "Technology transfer, institutions and development," Technological Forecasting and Social Change, Elsevier, vol. 88(C), pages 26-48.
    17. Cunado, J. & Gil-Alana, L. A. & Perez de Gracia, F., 2004. "Real convergence in Taiwan: a fractionally integrated approach," Journal of Asian Economics, Elsevier, vol. 15(3), pages 529-547, June.
    18. Hulten, Charles R., 2010. "Growth Accounting," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 987-1031, Elsevier.
    19. Mosahid Khan & Kul B. Luintel & Konstantinos Theodoris, 2010. "How Robust is the R&D – Productivity relationship? Evidence from OECD Countries," WIPO Economic Research Working Papers 01, World Intellectual Property Organization - Economics and Statistics Division, revised Dec 2010.
    20. Zaiter Lahimer, Mahjouba, 2011. "L’impact des entrées de capitaux privés sur la croissance économique dans les pays en développement," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/7670 edited by Sterdyniak, Henri.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:glodps:72. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/glabode.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.