Trade, Education, Governance and Distance: Impact on Technology Diffusion and Productivity Growth in Asia and LAC

Maurice Schiff and Yanling Wang

No 72, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: This paper examines the impact of North-South trade, education, governance and North-South distance, on technology diffusion and total factor productivity (TFP) growth in the South, focusing on LAC and East Asia over the 32 years before the Great Recession (1976-2007). Findings are: i) TFP rises with education, trade, governance (ETG) and imports’ R&D content, and falls with distance to the North; ii) an increase of LAC’s ETG to East Asia’s levels raises TFP by 165%, fully accounting for its TFP gap with East Asia; iii) the impact of the education gap equals the sum of the governance and openness gaps; and iv) South America’s loss of TFP relative to Mexico associated with its greater distance to US-Canada (both Europe and Japan) is 9.3 (0) percent.

Keywords: Trade; Governance; Education; Distance; Technology Diffusion; Productivity growth (search for similar items in EconPapers)
JEL-codes: F22 J61 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-cse, nep-dcm, nep-edu, nep-eff, nep-ino, nep-int, nep-sea and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:72

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