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.

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Journal Canadian Journal of Economics
Schiff, M. (Maurice), & Wang, Y. (2006). North-South and South-South trade-related technology diffusion: An industry-level analysis of direct and indirect effects. Canadian Journal of Economics, 39(3), 831–844. doi:10.1111/j.1540-5982.2006.00372.x