Trade-Related Technology Diffusion and the Dynamics of North-South and South-South Integration
25 Pages Posted: 18 Jun 2002
Date Written: June 2002
Abstract
This paper examines the impact on total factor productivity of North-South and South-South trade-related research and development (R&D) spillovers. It is the first, as far as we know, to do so at the industry level for developing countries. North-South and South-South R&D flows are constructed based on industry-specific R&D in the North, North-South and South-South trade patterns, and input-output relations in the South. The main findings are:
North-South and South-South R&D flows have a positive impact on total factor productivity, though the former is larger.
R&D-intensive industries benefit mainly from North-South R&D flows while low R&D-intensive industries benefit mainly from South-South R&D flows. These results have implications for dynamic comparative advantage and for the dynamics of North-South and South-South regional integration.
This paper - a product of Trade, Development Research Group - is part of a larger effort in the group to understand the impact of trade on technology diffusion.. The authors may be contacted at mschiff@worldbank.org or molarreaga@worldbank.org.
JEL Classification: F10, F15, O10, O19
Suggested Citation: Suggested Citation
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