Cross-Border Flows of People, Technology Diffusion and Aggregate Productivity

Thomas Andersen and Carl-Johan Dalgaard

DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade

Abstract: A number of empirical studies have investigated the hypothesis that cross-border flows of goods (international trade) and capital (FDI) lead to international technology diffusion. The contribution of the present paper consists in examining an as yet neglected vehicle for technology diffusion: cross-border flows of people. We find that increasing the intensity of international travel, for the purpose of business and otherwise, by 1% increases the level of aggregate total factor productivity and GDP per worker by roughly 0.2%.

Keywords: Technology diffusion; Productivity; IV estimation (search for similar items in EconPapers)
Pages: 31 pages JEL Classification: O33, O47, C21
Date: 2006-06
New Economics Papers: this item is included in nep-dev, nep-eff and nep-int
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Citations: View citations in EconPapers (8)

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Working Paper: Cross-Border Flows of People, Technology Diffusion and Aggregate Productivity (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:deg:conpap:c011_006

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