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

Thomas Andersen and Carl-Johan Dalgaard

No 06-04, Discussion Papers from University of Copenhagen. Department of Economics

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)
JEL-codes: C21 O33 O47 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2006-02
New Economics Papers: this item is included in nep-dev, nep-eff and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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