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International Knowledge Diffusion and the Comparative Advantage of Nations

Ricardo Hausmann, Cesar Hidalgo and Dany Bahar

Scholarly Articles from Harvard Kennedy School of Government

Abstract: In this paper we document that the probability that a product is added to a country’s export basket is, on average, 65% larger if a neighboring country is a successful exporter of that same product. We interpret our result as evidence of international intra-industry knowledge diffusion. Our results are consistent with the overall consensus in the literature on technology spillovers: diffusion is stronger at shorter distances; is weaker for more knowledge-intensive products; and has become faster over time.

Date: 2012
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Citations: View citations in EconPapers (4)

Published in HKS Faculty Research Working Paper Series and CID Working Papers

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