The energy-bias of North-South technology spillovers: A global, bilateral, bisectoral trade analysis

Michael Hübler and Alexander Glas

No 13-031, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: We examine variations in the South-North ratios (emerging vs. industrialized countries) of energy and labor intensities driven by imports. We use the novel World Input-Output Database (WIOD) that provides bilateral and bisectoral data for 40 countries and 35 sectors for 1995-2009. We find South-North convergence of energy and labor intensities, an energy bias of import-driven convergence and no robust difference between imports of intermediate and investment goods. Accordingly, trade helps emerging economies follow a 'green growth' path, and trade-related policies can enhance this path. However, the effects are economically small and require a long time horizon to become effective. Trade-related policies can become much more effective in selected countries and sectors: China attenuates labor intensity via imports of intermediate goods above average. Brazil reduces energy intensity via imports of intermediate and investment goods above average. Production of machinery as an importing sector in emerging countries can immoderately benefit from trade-related reductions in factor intensities. Electrical equipment as a traded good particularly decreases energy intensity. Machinery particularly dilutes labor intensity. Our main results are statistically highly significant and robust across specifications.

Keywords: Energy intensity; labor intensity; trade; technology diffusion; convergence; developing countries (search for similar items in EconPapers)
JEL-codes: C23 F18 F21 O13 O33 O47 Q43 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-cwa, nep-ene and nep-int
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Related works:
Journal Article: The Energy-Bias of North–South Technology Spillovers: A Global, Bilateral, Bisectoral Trade Analysis (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:13031

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