Trade-Related Technology Diffusion and the Dynamics of North-South and South-South Integration

25 Pages Posted: 18 Jun 2002

See all articles by Maurice Schiff

Maurice Schiff

Fellow, Institute for the Study of Labor (IZA)

Marcelo Olarreaga

University of Geneva; Centre for Economic Policy Research (CEPR)

Yanling Wang

Carleton University

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

Schiff, Maurice W. and Olarreaga, Marcelo and Wang, Yanling, Trade-Related Technology Diffusion and the Dynamics of North-South and South-South Integration (June 2002). World Bank Policy Research Working Paper No. 2861. Available at SSRN: https://ssrn.com/abstract=313838

Maurice W. Schiff (Contact Author)

Fellow, Institute for the Study of Labor (IZA) ( email )

Bonn
Germany

Marcelo Olarreaga

University of Geneva ( email )

40 Boulevard du Pont-d'Arve
Genève, GA CH - 1205
Switzerland

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Yanling Wang

Carleton University ( email )

1125 Colonel By Drive
Ottawa, Ontario K1S 5B6
Canada

HOME PAGE: http://https://carleton.ca/npsia/people/yanling-wang/

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