Technology Trade in Economic Development

Matthias Busse and José Groizard

No 22, DEA Working Papers from Universitat de les Illes Balears, Departament d'Economía Aplicada

Abstract: Recent evidence on the respective contributions of institutions and trade to income levels across countries has demonstrated that – once endogeneity is considered – institutional quality clearly dominates the effect of trade. We argue that overall trade is not the most appropriate measure for technology diffusion as a source of productivity growth and propose to focus on imports of research and development (R&D) intensive goods instead. Overall, we confirm previous findings that institutions matter most and that overall trade is not positively associated with per-capita income levels. Yet this does not hold for technology trade, as there is a positive and significant linkage between technology imports and income levels. This outcome is robust to various model specifications, including an instrumental variable approach.

Keywords: Growth; Technology Diffusion; Trade; R&D Spillovers. (search for similar items in EconPapers)
JEL-codes: F10 O11 O40 (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-dev, nep-ino and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Technology Trade in Economic Development (2008)
Working Paper: Technology trade in economic development (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ubi:deawps:22

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