North-South Trade-Related Technology Diffusion : Virtuous Growth Cycles in Latin America

This paper examines the impact on total factor productivity in Latin America and the Caribbean (LAC) and in other developing countries of trade-related technology diffusion from the North) (denoted by NRD), education, and governance, research and d...

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Main Authors: Schiff, Maurice, Wang, Yanling
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100510092815
http://hdl.handle.net/10986/3786
id okr-10986-3786
recordtype oai_dc
spelling okr-10986-37862021-04-23T14:02:12Z North-South Trade-Related Technology Diffusion : Virtuous Growth Cycles in Latin America Schiff, Maurice Wang, Yanling ABSORPTIVE CAPACITY ACCOUNTABILITY AGGREGATING GOVERNANCE INDICATORS AVERAGE LEVEL BUSINESS REGULATIONS CIVIL LIBERTIES CORRUPTION CRIME DOMESTIC R&D ECONOMICS EDUCATIONAL ATTAINMENT ENFORCEABILITY EQUIPMENT FOREIGN R&D GLOBAL ECONOMY GOOD GOVERNANCE GOVERNANCE VARIABLES GOVERNMENT EFFECTIVENESS GROWTH CYCLE GROWTH CYCLES GROWTH OF R&D GROWTH RATE GROWTH RATES HUMAN CAPITAL INCOME INNOVATION INNOVATIONS INTERNATIONAL TECHNOLOGY DIFFUSION INTERNATIONAL TRADE INVENTORY INVESTMENT IN R&D MANUFACTURING MANUFACTURING INDUSTRIES NEW TECHNOLOGIES POLITICAL INSTABILITY POLITICAL RIGHTS POLITICAL STABILITY PRODUCTIVITY PROPERTY RIGHTS R&D R&D EXPENDITURES R&D INTENSITIES R&D INTENSITY R&D SPILLOVERS R&D-INTENSIVE INDUSTRIES REGULATORY BURDEN RESULT RESULTS RULE OF LAW SKILLED WORKERS TEXTILES WEB WOOD This paper examines the impact on total factor productivity in Latin America and the Caribbean (LAC) and in other developing countries of trade-related technology diffusion from the North) (denoted by NRD), education, and governance, research and development The NRD value for a developing country is an average of R&D stocks in the North, with weights related to openness with the North. Industry-specific NRD is based on the North s industry-specific R&D, North-South trade patterns, and input-output relations in the South. The main findings are: i) the impact of education and governance on TFP is significantly larger in LAC than in other developing countries, while the opposite holds for NRD; and ii) education, governance and NRD have additional effects on TFP in LAC s R&D-intensive industries through their interaction with either or both of the other two variables; and iii) since NRD increases with openness and with R&D in the North, both variables raise the South's TFP directly as well as through their interaction with education and governance. These interaction effects imply that increasing the level of any of the three policy variables -- education, governance, or openness --results in virtuous growth cycles. These are smallest under an increase in one of these variables, stronger under an increase in two of them and strongest under an increase in all three variables. 2012-03-19T18:39:47Z 2012-03-19T18:39:47Z 2010-05-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100510092815 http://hdl.handle.net/10986/3786 English Policy Research working paper ; no. WPS 5300 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Latin America & Caribbean Latin America & Caribbean
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ABSORPTIVE CAPACITY
ACCOUNTABILITY
AGGREGATING GOVERNANCE INDICATORS
AVERAGE LEVEL
BUSINESS REGULATIONS
CIVIL LIBERTIES
CORRUPTION
CRIME
DOMESTIC R&D
ECONOMICS
EDUCATIONAL ATTAINMENT
ENFORCEABILITY
EQUIPMENT
FOREIGN R&D
GLOBAL ECONOMY
GOOD GOVERNANCE
GOVERNANCE VARIABLES
GOVERNMENT EFFECTIVENESS
GROWTH CYCLE
GROWTH CYCLES
GROWTH OF R&D
GROWTH RATE
GROWTH RATES
HUMAN CAPITAL
INCOME
INNOVATION
INNOVATIONS
INTERNATIONAL TECHNOLOGY DIFFUSION
INTERNATIONAL TRADE
INVENTORY
INVESTMENT IN R&D
MANUFACTURING
MANUFACTURING INDUSTRIES
NEW TECHNOLOGIES
POLITICAL INSTABILITY
POLITICAL RIGHTS
POLITICAL STABILITY
PRODUCTIVITY
PROPERTY RIGHTS
R&D
R&D EXPENDITURES
R&D INTENSITIES
R&D INTENSITY
R&D SPILLOVERS
R&D-INTENSIVE INDUSTRIES
REGULATORY BURDEN
RESULT
RESULTS
RULE OF LAW
SKILLED WORKERS
TEXTILES
WEB
WOOD
spellingShingle ABSORPTIVE CAPACITY
ACCOUNTABILITY
AGGREGATING GOVERNANCE INDICATORS
AVERAGE LEVEL
BUSINESS REGULATIONS
CIVIL LIBERTIES
CORRUPTION
CRIME
DOMESTIC R&D
ECONOMICS
EDUCATIONAL ATTAINMENT
ENFORCEABILITY
EQUIPMENT
FOREIGN R&D
GLOBAL ECONOMY
GOOD GOVERNANCE
GOVERNANCE VARIABLES
GOVERNMENT EFFECTIVENESS
GROWTH CYCLE
GROWTH CYCLES
GROWTH OF R&D
GROWTH RATE
GROWTH RATES
HUMAN CAPITAL
INCOME
INNOVATION
INNOVATIONS
INTERNATIONAL TECHNOLOGY DIFFUSION
INTERNATIONAL TRADE
INVENTORY
INVESTMENT IN R&D
MANUFACTURING
MANUFACTURING INDUSTRIES
NEW TECHNOLOGIES
POLITICAL INSTABILITY
POLITICAL RIGHTS
POLITICAL STABILITY
PRODUCTIVITY
PROPERTY RIGHTS
R&D
R&D EXPENDITURES
R&D INTENSITIES
R&D INTENSITY
R&D SPILLOVERS
R&D-INTENSIVE INDUSTRIES
REGULATORY BURDEN
RESULT
RESULTS
RULE OF LAW
SKILLED WORKERS
TEXTILES
WEB
WOOD
Schiff, Maurice
Wang, Yanling
North-South Trade-Related Technology Diffusion : Virtuous Growth Cycles in Latin America
geographic_facet Latin America & Caribbean
Latin America & Caribbean
relation Policy Research working paper ; no. WPS 5300
description This paper examines the impact on total factor productivity in Latin America and the Caribbean (LAC) and in other developing countries of trade-related technology diffusion from the North) (denoted by NRD), education, and governance, research and development The NRD value for a developing country is an average of R&D stocks in the North, with weights related to openness with the North. Industry-specific NRD is based on the North s industry-specific R&D, North-South trade patterns, and input-output relations in the South. The main findings are: i) the impact of education and governance on TFP is significantly larger in LAC than in other developing countries, while the opposite holds for NRD; and ii) education, governance and NRD have additional effects on TFP in LAC s R&D-intensive industries through their interaction with either or both of the other two variables; and iii) since NRD increases with openness and with R&D in the North, both variables raise the South's TFP directly as well as through their interaction with education and governance. These interaction effects imply that increasing the level of any of the three policy variables -- education, governance, or openness --results in virtuous growth cycles. These are smallest under an increase in one of these variables, stronger under an increase in two of them and strongest under an increase in all three variables.
format Publications & Research :: Policy Research Working Paper
author Schiff, Maurice
Wang, Yanling
author_facet Schiff, Maurice
Wang, Yanling
author_sort Schiff, Maurice
title North-South Trade-Related Technology Diffusion : Virtuous Growth Cycles in Latin America
title_short North-South Trade-Related Technology Diffusion : Virtuous Growth Cycles in Latin America
title_full North-South Trade-Related Technology Diffusion : Virtuous Growth Cycles in Latin America
title_fullStr North-South Trade-Related Technology Diffusion : Virtuous Growth Cycles in Latin America
title_full_unstemmed North-South Trade-Related Technology Diffusion : Virtuous Growth Cycles in Latin America
title_sort north-south trade-related technology diffusion : virtuous growth cycles in latin america
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100510092815
http://hdl.handle.net/10986/3786
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