North-South and South-South Trade-Related Technology Diffusion: An Industry Level Analysis

Marcelo Olarreaga (), Maurice Schiff () and Yanling Wang

No 3711, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This Paper examines the impact on TFP of North-South and South-South trade-related R&D spillovers. It is the first, as far as we know, to do so at the industry level for developing countries. North-South and South-South R&D flows are constructed based on industry-specific R&D in the North, North-South and South-South trade patterns, and input-output relations in the South. The main findings are: i) North-South and South-South R&D flows have a positive impact on TFP, though the former is larger; and ii) R&D-intensive industries benefit mainly from North-South R&D flows while low R&D-intensity industries benefit mainly from South-South R&D flows. These results have implications for the productivity dynamics of North-South and South-South regional integration.

Keywords: developing countries; technology diffusion; trade (search for similar items in EconPapers)
JEL-codes: F01 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev
Date: 2003-01
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