The Role of Inter- and Intraindustry Trade in Technology Diffusion

Dalia Hakura and Florence Jaumotte ()

No 1999/058, IMF Working Papers from International Monetary Fund

Abstract: Research shows that international trade is an important channel for the transfer of technology. Building on this evidence, this paper examines the effects of inter- and intraindustry trade on technology transfer. The paper develops and tests the hypothesis that intraindustry trade stimulates more technology transfer than interindustry trade because countries are likely to absorb foreign technologies more easily when their imports are from the same sectors as their production and export sectors. The results of empirical tests for 87 countries during 1970–93 support this hypothesis.

Keywords: WP; industry trade; IIT index; significance level; Technology spillovers; Intraindustry Trade; Interindustry Trade; trade sector; trade index; sectors to TFP gap; Total factor productivity; Imports; Technology transfer; Exports; Sub-Saharan Africa; East Asia; South Asia; Middle East; North Africa (search for similar items in EconPapers)
Pages: 29
Date: 1999-04-01
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:1999/058

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