“Geography, International Trade and Technological Diffusion”
This paper investigates the impact of geography on technological diffusion via international trade and proposes to re-examine the contribution of Coe, Helpman and Hoffmaister to the knowledge spillovers literature. Using a gravitational model, we first confirm the negative effect of physical distanc...
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| Format: | Text |
| Language: | English |
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| Online Access: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.456.3644 http://content.csbs.utah.edu/~ehrbar/erc2002/pdf/P069.pdf |
| Summary: | This paper investigates the impact of geography on technological diffusion via international trade and proposes to re-examine the contribution of Coe, Helpman and Hoffmaister to the knowledge spillovers literature. Using a gravitational model, we first confirm the negative effect of physical distance on imports. We also show that geographic proximity contributes to more technological diffusion generated by imports. However, a decreasing technological diffusion effect is observed over time. A 1 percent increase in imports from European G6 countries generates, via technological diffusion, a mean increase of TFP by 1.3 percent for Mediterranean countries and 0.9 percent for MENA countries during the period 1982-1988, whereas technological diffusion effects on TFP are no more significant for the period 1989-1995. JEL Classification: F, O |
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