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

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  • 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
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    More about this item

    Keywords

    Trade; Governance; Education; Distance; Technology Diffusion; Productivity growth;
    All these 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

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