North-South Trade-related Technology Diffusion, Brain Drain and Productivity Growth : Are Small States Different?

The economies of small developing states tend to be more fragile than those of large ones. This paper examines this issue in a dynamic context by focusing on the impact of the brain drain on North-South trade-related technology diffusion and total...

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Main Authors:	Schiff, Maurice, Wang, Yanling
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ADVANCED COUNTRY BILATERAL TRADE BRAIN BRAIN DRAIN CAPITAL ACCUMULATION CAPITAL FORMATION CAPITAL STOCKS DEVELOPING COUNTRIES DEVELOPING COUNTRY DOMESTIC R&D ECONOMICS EQUATIONS EXPECTED RETURN FIXED CAPITAL FOREIGN R&D GDP GDP DEFLATOR GDP PER CAPITA GLOBAL ECONOMY GLOBAL INTEGRATION GROWTH RATE GROWTH THEORY HUMAN CAPITAL IDEA IDEAS INCOME INCOMES INCREASING RETURNS INDUSTRIAL COUNTRIES INNOVATION INTEGRATION INVENTORY KNOWLEDGE DIFFUSION LEVEL OF EDUCATION OPEN ECONOMY POLITICAL ECONOMY PRODUCTIVITY PRODUCTIVITY GROWTH R&D REAL GDP SECONDARY SCHOOL COMPLETION RATIO SKILLED LABOR SKILLED WORKERS TECHNOLOGY DIFFUSION TECHNOLOGY TRANSFER TERTIARY EDUCATION TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRADE LIBERALIZATION VALUE ADDED WAGES
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_20090130100805 http://hdl.handle.net/10986/4025

id	okr-10986-4025
recordtype	oai_dc
spelling	okr-10986-40252021-04-23T14:02:14Z North-South Trade-related Technology Diffusion, Brain Drain and Productivity Growth : Are Small States Different? Schiff, Maurice Wang, Yanling ADVANCED COUNTRY BILATERAL TRADE BRAIN BRAIN DRAIN CAPITAL ACCUMULATION CAPITAL FORMATION CAPITAL STOCKS DEVELOPING COUNTRIES DEVELOPING COUNTRY DOMESTIC R&D ECONOMICS EQUATIONS EXPECTED RETURN FIXED CAPITAL FOREIGN R&D GDP GDP DEFLATOR GDP PER CAPITA GLOBAL ECONOMY GLOBAL INTEGRATION GROWTH RATE GROWTH THEORY HUMAN CAPITAL IDEA IDEAS INCOME INCOMES INCREASING RETURNS INDUSTRIAL COUNTRIES INNOVATION INTEGRATION INVENTORY KNOWLEDGE DIFFUSION LEVEL OF EDUCATION OPEN ECONOMY POLITICAL ECONOMY PRODUCTIVITY PRODUCTIVITY GROWTH R&D REAL GDP SECONDARY SCHOOL COMPLETION RATIO SKILLED LABOR SKILLED WORKERS TECHNOLOGY DIFFUSION TECHNOLOGY TRANSFER TERTIARY EDUCATION TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRADE LIBERALIZATION VALUE ADDED WAGES The economies of small developing states tend to be more fragile than those of large ones. This paper examines this issue in a dynamic context by focusing on the impact of the brain drain on North-South trade-related technology diffusion and total factor productivity growth in small and large states in the South. There are three main findings. First, productivity growth increases with North-South trade-related technology diffusion and education and the interaction between the two, and decreases with the brain drain. Second, the impact of North-South trade-related technology diffusion, education, and their interaction on productivity growth in small states is more than three times that for large countries, with the negative impact of the brain drain thus more than three times greater in small than in large states. And third, the greater loss in productivity growth in small states has two brain drain-related causes: a substantially greater sensitivity of productivity growth to the brain drain, and brain drain levels that are more than five times greater in small than in large states. 2012-03-19T19:08:35Z 2012-03-19T19:08:35Z 2009-01-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090130100805 http://hdl.handle.net/10986/4025 English Policy Research working paper ; no. WPS 4828 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ADVANCED COUNTRY BILATERAL TRADE BRAIN BRAIN DRAIN CAPITAL ACCUMULATION CAPITAL FORMATION CAPITAL STOCKS DEVELOPING COUNTRIES DEVELOPING COUNTRY DOMESTIC R&D ECONOMICS EQUATIONS EXPECTED RETURN FIXED CAPITAL FOREIGN R&D GDP GDP DEFLATOR GDP PER CAPITA GLOBAL ECONOMY GLOBAL INTEGRATION GROWTH RATE GROWTH THEORY HUMAN CAPITAL IDEA IDEAS INCOME INCOMES INCREASING RETURNS INDUSTRIAL COUNTRIES INNOVATION INTEGRATION INVENTORY KNOWLEDGE DIFFUSION LEVEL OF EDUCATION OPEN ECONOMY POLITICAL ECONOMY PRODUCTIVITY PRODUCTIVITY GROWTH R&D REAL GDP SECONDARY SCHOOL COMPLETION RATIO SKILLED LABOR SKILLED WORKERS TECHNOLOGY DIFFUSION TECHNOLOGY TRANSFER TERTIARY EDUCATION TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRADE LIBERALIZATION VALUE ADDED WAGES
spellingShingle	ADVANCED COUNTRY BILATERAL TRADE BRAIN BRAIN DRAIN CAPITAL ACCUMULATION CAPITAL FORMATION CAPITAL STOCKS DEVELOPING COUNTRIES DEVELOPING COUNTRY DOMESTIC R&D ECONOMICS EQUATIONS EXPECTED RETURN FIXED CAPITAL FOREIGN R&D GDP GDP DEFLATOR GDP PER CAPITA GLOBAL ECONOMY GLOBAL INTEGRATION GROWTH RATE GROWTH THEORY HUMAN CAPITAL IDEA IDEAS INCOME INCOMES INCREASING RETURNS INDUSTRIAL COUNTRIES INNOVATION INTEGRATION INVENTORY KNOWLEDGE DIFFUSION LEVEL OF EDUCATION OPEN ECONOMY POLITICAL ECONOMY PRODUCTIVITY PRODUCTIVITY GROWTH R&D REAL GDP SECONDARY SCHOOL COMPLETION RATIO SKILLED LABOR SKILLED WORKERS TECHNOLOGY DIFFUSION TECHNOLOGY TRANSFER TERTIARY EDUCATION TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRADE LIBERALIZATION VALUE ADDED WAGES Schiff, Maurice Wang, Yanling North-South Trade-related Technology Diffusion, Brain Drain and Productivity Growth : Are Small States Different?
geographic_facet	The World Region The World Region
relation	Policy Research working paper ; no. WPS 4828
description	The economies of small developing states tend to be more fragile than those of large ones. This paper examines this issue in a dynamic context by focusing on the impact of the brain drain on North-South trade-related technology diffusion and total factor productivity growth in small and large states in the South. There are three main findings. First, productivity growth increases with North-South trade-related technology diffusion and education and the interaction between the two, and decreases with the brain drain. Second, the impact of North-South trade-related technology diffusion, education, and their interaction on productivity growth in small states is more than three times that for large countries, with the negative impact of the brain drain thus more than three times greater in small than in large states. And third, the greater loss in productivity growth in small states has two brain drain-related causes: a substantially greater sensitivity of productivity growth to the brain drain, and brain drain levels that are more than five times greater in small than in large states.
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, Brain Drain and Productivity Growth : Are Small States Different?
title_short	North-South Trade-related Technology Diffusion, Brain Drain and Productivity Growth : Are Small States Different?
title_full	North-South Trade-related Technology Diffusion, Brain Drain and Productivity Growth : Are Small States Different?
title_fullStr	North-South Trade-related Technology Diffusion, Brain Drain and Productivity Growth : Are Small States Different?
title_full_unstemmed	North-South Trade-related Technology Diffusion, Brain Drain and Productivity Growth : Are Small States Different?
title_sort	north-south trade-related technology diffusion, brain drain and productivity growth : are small states different?
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_20090130100805 http://hdl.handle.net/10986/4025
_version_	1764389557903556608

North-South Trade-related Technology Diffusion, Brain Drain and Productivity Growth : Are Small States Different?

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