Technology Trade, Productivity and Growth

José Groizard

No 4, DEA Working Papers from Universitat de les Illes Balears, Departament d'Economía Aplicada

Abstract: International trade is a major channel for technology diffusion. However regressing trade in R&D intensive goods to evaluate the effect of technology imports on productivity in a cross section of countries may be misleading because of simultaneity bias. I identify the effect of technology trade on productivity using geographical instruments for the trade variable as in Frankel and Romer (1999). I make several contributions. First, I provide evidence that OLS estimates are downward biased. Second, the effect is robust to the exclusion of outliers, the inclusion of latitude, and to different subsamples. Finally, I document the channels throughout technology imports affect productivity.

Keywords: Growth; Technology Diffusion; Instrumental Variables; R&D Spillovers; Capital Goods. (search for similar items in EconPapers)
JEL-codes: C31 O11 O40 (search for similar items in EconPapers)
Date: 2003-11
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://dea.uib.es/download?filename=w4.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ubi:deawps:4

Access Statistics for this paper

More papers in DEA Working Papers from Universitat de les Illes Balears, Departament d'Economía Aplicada Contact information at EDIRC.
Bibliographic data for series maintained by Xisco Oliver (xisco.oliver@uib.es).