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North-South Trade, Technology Diffusion and Productivity Growth: Are Small States Different?

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  • Schiff, Maurice
  • Wang, Yanling

Abstract

The economies of small developing states tend to be more fragile than those in large ones. This paper examines this issue in a dynamic context by focusing on the impact of education and North-South trade-related technology diffusion (NRD) on TFP growth in small and large states in the South. The main findings are: i) TFP growth increases with NRD, education and the interaction between the two; ii) the impact of NRD, education and their interaction on TFP growth in small states is over three times that for large countries; and iii) the greater TFP growth loss in small states has two brain drain-related causes: a substantially greater sensitivity of TFP growth to the brain drain, and brain drain levels that are much higher in small than in large states.

Suggested Citation

  • Schiff, Maurice & Wang, Yanling, 2017. "North-South Trade, Technology Diffusion and Productivity Growth: Are Small States Different?," GLO Discussion Paper Series 79, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:79
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    References listed on IDEAS

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    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
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    5. Yanling Wang, 2007. "Trade, Human Capital, and Technology Spillovers: an Industry‐level Analysis," Review of International Economics, Wiley Blackwell, vol. 15(2), pages 269-283, May.
    6. Michel Beine & Fréderic Docquier & Hillel Rapoport, 2008. "Brain Drain and Human Capital Formation in Developing Countries: Winners and Losers," Economic Journal, Royal Economic Society, vol. 118(528), pages 631-652, April.
    7. Docquier, Frédéric & Schiff, Maurice, 2008. "Measuring Skilled Emigration Rates: The Case of Small States," IZA Discussion Papers 3388, Institute of Labor Economics (IZA).
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Technology Diffusion; Trade; Productivity Growth; Education;
    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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