Neighbors and the evolution of the comparative advantage of nations: Evidence of international knowledge diffusion?

Dany Bahar, Ricardo Hausmann and Cesar Hidalgo

Journal of International Economics, 2014, vol. 92, issue 1, 111-123

Abstract: The literature on knowledge diffusion shows that knowledge decays strongly with distance. 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. For existing products, growth of exports in a country is 1.5% higher per annum if it has a neighbor with comparative advantage in these products. While these results could be driven by a common third factor that escapes our controls, they align with our expectations of the localized character of knowledge diffusion.

Keywords: Export similarity; Productivity; Knowledge; Technology; Diffusion; Spillovers (search for similar items in EconPapers)
JEL-codes: F10 O31 O33 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (165)

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Related works:
Working Paper: Neighbors and the Evolution of the Comparative Advantage of Nations: Evidence of International Knowledge Diffusion? (2013)
Working Paper: Neighbors and the Evolution of the Comparative Advantage of Nations: Evidence of International Knowledge Diffusion? (2012)
Working Paper: Neighbors and the Evolution of the Comparative Advantage of Nations: Evidence of International Knowledge Diffusion? (2012)
Working Paper: Neighbors and the Evolution of the Comparative Advantage of Nations: Evidence of International Knowledge Diffusion?
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:92:y:2014:i:1:p:111-123

DOI: 10.1016/j.jinteco.2013.11.001

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