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Heterogeneous Technology Diffusion and Ricardian Trade Patterns

45 Pages Posted: 15 Nov 2013  

William R. Kerr

Harvard University - Entrepreneurial Management Unit

Multiple version iconThere are 3 versions of this paper

Date Written: November 14, 2013

Abstract

This study tests the importance of Ricardian technology differences for international trade. The empirical analysis has three comparative advantages: including emerging and advanced economies, isolating panel variation regarding the link between productivity and exports, and exploiting heterogeneous technology diffusion from immigrant communities in the United States for identification. The latter instruments are developed by combining panel variation on the development of new technologies across U.S. cities with historical settlement patterns for migrants from countries. The instrumented elasticity of export growth on the intensive margin with respect to the exporter’s productivity growth is between 1.6 and 2.4 depending upon weighting.

Keywords: Trade, Exports, Comparative Advantage, Technological Transfer, Patents, Innovation, Research and Development, Immigration, Networks

JEL Classification: F11, F14, F15, F22, J44, J61, L14, O31, O33, O57

Suggested Citation

Kerr, William R., Heterogeneous Technology Diffusion and Ricardian Trade Patterns (November 14, 2013). Harvard Business School Entrepreneurial Management Working Paper No. 14-039. Available at SSRN: https://ssrn.com/abstract=2354388 or http://dx.doi.org/10.2139/ssrn.2354388

William R. Kerr (Contact Author)

Harvard University - Entrepreneurial Management Unit ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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