North-South and South-South trade-related technology diffusion: an industry-level analysis of direct and indirect effects


  • We would like to thank an anonymous referee for suggestions that proved invaluable in improving the paper, and Susan Collins, Caroline Freund, Daniel Lederman, Rodney Ludema, Will Martin, Keith Maskus, Marcelo Olarreaga, and seminar participants at the World Bank, for their useful comments. The opinions expressed in this paper are those of the authors and do not necessarily represent their respective institutions.


Abstract This paper examines one direct and three indirect channels of North-South trade-related technology diffusion. We find that i) the largest impact on TFP in the South is from direct North-South technology diffusion; ii) there are also significant effects from indirect North-South technology diffusion, though their magnitude is smaller than that of the direct one; and iii) the impact of direct North-South technology diffusion on TFP in the South occurs faster than the impact of indirect technology diffusion.


Ce mémoire examine un canal direct et trois canaux indirects de diffusion de la technologie reliée au commerce Nord-Sud. On découvre que (i) le plus gros impact sur la productivité totale des facteurs (PTF) dans le Sud vient de la diffusion directe Nord-Sud de la technologie; (ii) il y a aussi des effets significatifs de la diffusion indirecte Nord-Sud de la technologie, mais d'une importance moins grande que les effets directs; et (iii) l'impact de la diffusion directe Nord-Sud de la technologie sur la PTF se produit plus vite que l'impact de la diffusion indirecte.