International Knowledge Diffusion and the Comparative Advantage of Nations

59 Pages Posted: 19 Jun 2012

See all articles by Dany Bahar

Dany Bahar

Brookings Institution; Harvard University - Center for International Development (CID)

Ricardo Hausmann

Harvard University - Harvard Kennedy School (HKS)

Cesar Hidalgo

Massachusetts Institute of Technology (MIT) - MIT Media Laboratory; Harvard University - Harvard Kennedy School (HKS)

Date Written: May 24, 2012

Abstract

In this paper we document that the probability that a product is added to a country’s export basket is, on average, 65% larger if a neighboring country is a successful exporter of that same product. We interpret our result as evidence of international intra-industry knowledge diffusion. Our results are consistent with the overall consensus in the literature on technology spillovers: diffusion is stronger at shorter distances; is weaker for more knowledge-intensive products; and has become faster over time.

Keywords: knowledge diffusion, trade economics, international economics

Suggested Citation

Bahar, Dany and Hausmann, Ricardo and Hidalgo, Cesar, International Knowledge Diffusion and the Comparative Advantage of Nations (May 24, 2012). HKS Working Paper No. RWP12-020, Available at SSRN: https://ssrn.com/abstract=2087607 or http://dx.doi.org/10.2139/ssrn.2087607

Dany Bahar

Brookings Institution ( email )

1775 Massachusetts Ave, NW
Washington, DC 20036
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Harvard University - Center for International Development (CID)

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Ricardo Hausmann (Contact Author)

Harvard University - Harvard Kennedy School (HKS) ( email )

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HOME PAGE: http://www.hks.harvard.edu/about/faculty-staff-directory/ricardo-hausmann

Cesar Hidalgo

Massachusetts Institute of Technology (MIT) - MIT Media Laboratory ( email )

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E14-348b
Cambridge, MA 02139-4307
United States
617-324-6680 (Phone)
617-258-6264 (Fax)

HOME PAGE: http://www.chidalgo.com/

Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Cambridge, MA 02138
United States
574-315-5494 (Phone)

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