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North-south Trade-related Technology Diffusion: Virtuous Growth Cycles In Latin America

Download Now Date Added: May 2010
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This paper examines the impact on TFP in Latin America and the Caribbean (LAC) and in other DEVeloping countries (DEV) of trade-related foreign R&D (NRD), education and governance. The measures of NRD are constructed based on industry-specific R&D in the North, North-South trade patterns, and input-output relations in the South. The main findings are: education and governance have a much larger direct effect on TFP in LAC than in DEV, while the opposite holds for the North's R&D; and education and governance have an additional impact on TFP in R&D-intensive industries through their interaction with NRD in LAC but not in DEV.