Technology trade in economic development

Matthias Busse and José Groizard

No 2-9, HWWI Research Papers from Hamburg Institute of International Economics (HWWI)

Abstract: Recent evidence on the respective contributions of institutions and trade to income levels across countries has demonstrated that - once endogeneity is considered - institutional quality clearly dominates the effect of trade. We argue that overall trade is not the most appropriate measure for technology diffusion as a source of productivity growth and propose to focus on imports of research and development (R&D) intensive goods instead. Overall, we confirm previous findings that institutions matter most and that overall trade is not positively associated with per-capita income levels. Yet this does not hold for technology trade, as there is a positive and significant linkage between technology imports and income levels. This outcome is robust to various model specifications, including an instrumental variable approach.

Keywords: Growth; Technology Diffusion; Trade; R&D Spillovers (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Technology Trade in Economic Development (2008)
Working Paper: Technology Trade in Economic Development (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:hwwirp:2-9

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