North-South Trade, Technology Diffusion and Productivity Growth: Are Small States Different?

Maurice Schiff and Yanling Wang

No 79, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: The economies of small developing states tend to be more fragile than those in large ones. This paper examines this issue in a dynamic context by focusing on the impact of education and North-South trade-related technology diffusion (NRD) on TFP growth in small and large states in the South. The main findings are: i) TFP growth increases with NRD, education and the interaction between the two; ii) the impact of NRD, education and their interaction on TFP growth in small states is over three times that for large countries; and iii) the greater TFP growth loss in small states has two brain drain-related causes: a substantially greater sensitivity of TFP growth to the brain drain, and brain drain levels that are much higher in small than in large states.

Keywords: Technology Diffusion; Trade; Productivity Growth; Education (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-eff and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:79

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