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

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2002-06
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2013-06-27
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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 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: 1) North-South and South-South R&D flows have a positive impact on total factor productivity, though the former is larger. 2) 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.
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Schiff, Maurice; Wang, Yanling; Olarreaga, Marcelo. 2002. Trade-Related Technology Diffusion and the Dynamics of North-South and South-South Integration. Policy Research Working Paper;No.2861. © World Bank. http://hdl.handle.net/10986/14263 License: CC BY 3.0 IGO.
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