Publication: International Knowledge Diffusion and the Comparative Advantage of Nations
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Date
2012
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John F. Kennedy School of Government, Harvard University
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Bahar, Dany, Ricardo Hausmann, and Cesar Hidalgo. 2012. International Knowledge Diffusion and the Comparative Advantage of Nations. HKS Faculty Research Working Paper Series and CID Working Papers (RWP12-020 and 235), John F. Kennedy School of Government, Harvard University.
Abstract
In this paper we document that the probability that a product is added to a country’s export basket is, on average, 65% larger if a neighboring country is a successful exporter of that same product. We interpret our result as evidence of international intra-industry knowledge diffusion. Our results are consistent with the overall consensus in the literature on technology spillovers: diffusion is stronger at shorter distances; is weaker for more knowledge-intensive products; and has become faster over time.
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Keywords
Economic Growth, International Development, Trade Policy
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