This paper examines the impact on total factor productivity (TFP) growth in the South of North-South and South-South trade-related technology diffusion and of foreign direct investment (FDI). North-South and South-South trade-related research and development (R&D) stocks are constructed based on industry-specific R&D in the North, North-South and South-South trade patterns, and input-output relations in the South. The main findings are: 1. Both North-South and South-South trade-related R&D have a positive impact on TFP growth in the South; 2. FDI has a positive, though smaller, impact on TFP growth; 3. The impact on TFP growth of trade-related technology diffusion increases with the level of education in the case of North-South trade but not in the case of South-South trade.

Additional Metadata
Persistent URL dx.doi.org/10.1080/00220380701722282
Journal Journal of Development Studies
Citation
Schiff, M. (Maurice), & Wang, Y. (2008). North-South and South-South trade-related technology diffusion: How important are they in improving TFP growth?. Journal of Development Studies, 44(1), 49–59. doi:10.1080/00220380701722282