The Energy-Bias of North-South Technology Spillovers – A Global, Bilateral, Bisectoral Trade Analysis

53 Pages Posted: 21 Jun 2013

See all articles by Michael Hübler

Michael Hübler

Leibniz Universität Hannover

Alexander Glas

University of Nuremberg-Erlangen

Date Written: 2013

Abstract

We examine variations in the South-North ratios (emerging vs. industrialized countries) of energy and labor intensities driven by imports. We use the novel World Input-Output Database (WIOD) that provides bilateral and bisectoral data for 40 countries and 35 sectors for 1995-2009. We find South-North convergence of energy and labor intensities, an energy bias of import-driven convergence and no robust difference between imports of intermediate and investment goods. Accordingly, trade helps emerging economies follow a ’green growth’ path, and trade-related policies can enhance this path. However, the effects are economically small and require a long time horizon to become effective. Trade-related policies can become much more effective in selected countries and sectors: China attenuates labor intensity via imports of intermediate goods above average. Brazil reduces energy intensity via imports of intermediate and investment goods above average. Production of machinery as an importing sector in emerging countries can immoderately benefit from trade-related reductions in factor intensities. Electrical equipment as a traded good particularly decreases energy intensity. Machinery particularly dilutes labor intensity. Our main results are statistically highly significant and robust across specifications.

Keywords: C23, F18, F21, O13, O33, O47, Q43

JEL Classification: Energy intensity, labor intensity, trade, technology diffusion, convergence, developing countries

Suggested Citation

Hübler, Michael and Glas, Alexander, The Energy-Bias of North-South Technology Spillovers – A Global, Bilateral, Bisectoral Trade Analysis (2013). ZEW - Centre for European Economic Research Discussion Paper No. 31, Available at SSRN: https://ssrn.com/abstract=2278862 or http://dx.doi.org/10.2139/ssrn.2278862

Michael Hübler (Contact Author)

Leibniz Universität Hannover ( email )

Institute f. Environm. Economics and World Trade
Koenigsworther Platz 1
30167 Hannover, DE 30167
Germany

Alexander Glas

University of Nuremberg-Erlangen ( email )

Lange Gasse 20
Nuremberg, 90403
Germany
+49 911 5302-278 (Phone)

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