Heterogeneous Technology Diffusion and Ricardian Trade Patterns

Migration and trade are often linked through ethnic networks boosting bilateral trade. This study uses migration to quantify the importance of Ricardian technology differences for international trade. The framework provides the first panel estimates connecting country-industry productivity and expor...

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Main Author: Kerr, William R.
Format: Journal Article
Published: Published by Oxford University Press on behalf of the World Bank 2019
Subjects:
Online Access:http://hdl.handle.net/10986/32170
id okr-10986-32170
recordtype oai_dc
spelling okr-10986-321702021-05-25T10:54:42Z Heterogeneous Technology Diffusion and Ricardian Trade Patterns Kerr, William R. TRADE EXPORTS COMPARATIVE ADVANTAGE TECHNOLOGY TRANSFER PATENTS INNOVATION RESEARCH AND DEVELOPMENT IMMIGRATION NETWORKS ETHNIC MINORITY Migration and trade are often linked through ethnic networks boosting bilateral trade. This study uses migration to quantify the importance of Ricardian technology differences for international trade. The framework provides the first panel estimates connecting country-industry productivity and exports, and the study exploits heterogeneous technology diffusion from immigrant communities in the United States for identification. The latter instruments are developed by combining panel variation on the development of new technologies across US cities with historical settlement patterns for migrants from countries. The instrumented elasticity of export growth on the intensive margin with respect to the exporter’s productivity growth is between 1.6 and 2.4, depending upon weighting. This provides an important contribution to the trade literature of Ricardian advantages, and it establishes a connection of migration to home country exports beyond bilateral networks. 2019-08-05T18:58:13Z 2019-08-05T18:58:13Z 2018-02-01 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/32170 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Publications & Research United States
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
topic TRADE
EXPORTS
COMPARATIVE ADVANTAGE
TECHNOLOGY TRANSFER
PATENTS
INNOVATION
RESEARCH AND DEVELOPMENT
IMMIGRATION
NETWORKS
ETHNIC MINORITY
spellingShingle TRADE
EXPORTS
COMPARATIVE ADVANTAGE
TECHNOLOGY TRANSFER
PATENTS
INNOVATION
RESEARCH AND DEVELOPMENT
IMMIGRATION
NETWORKS
ETHNIC MINORITY
Kerr, William R.
Heterogeneous Technology Diffusion and Ricardian Trade Patterns
geographic_facet United States
description Migration and trade are often linked through ethnic networks boosting bilateral trade. This study uses migration to quantify the importance of Ricardian technology differences for international trade. The framework provides the first panel estimates connecting country-industry productivity and exports, and the study exploits heterogeneous technology diffusion from immigrant communities in the United States for identification. The latter instruments are developed by combining panel variation on the development of new technologies across US cities with historical settlement patterns for migrants from countries. The instrumented elasticity of export growth on the intensive margin with respect to the exporter’s productivity growth is between 1.6 and 2.4, depending upon weighting. This provides an important contribution to the trade literature of Ricardian advantages, and it establishes a connection of migration to home country exports beyond bilateral networks.
format Journal Article
author Kerr, William R.
author_facet Kerr, William R.
author_sort Kerr, William R.
title Heterogeneous Technology Diffusion and Ricardian Trade Patterns
title_short Heterogeneous Technology Diffusion and Ricardian Trade Patterns
title_full Heterogeneous Technology Diffusion and Ricardian Trade Patterns
title_fullStr Heterogeneous Technology Diffusion and Ricardian Trade Patterns
title_full_unstemmed Heterogeneous Technology Diffusion and Ricardian Trade Patterns
title_sort heterogeneous technology diffusion and ricardian trade patterns
publisher Published by Oxford University Press on behalf of the World Bank
publishDate 2019
url http://hdl.handle.net/10986/32170
_version_ 1764475948934103040