NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

How Trade Patterns and Technology Flows Affect Productivity Growth

Wolfgang Keller

NBER Working Paper No. 6990
Issued in March 1999
NBER Program(s):   ITI   PR

This paper examines the evidence on technology diffusion through trade in differentiated intermediate goods. Because intermediates are invented through costly research and development (R&D) investments, employing imported intermediates implies an implicit sharing of the technology that was created in other countries. The model predicts that the import patterns of countries matters for productivity, because a country that imports primarily from technological leaders receives more technology embodied in intermediate goods than another that imports primarily from follower countries. I try to quantify the importance of trade patterns in determining technology flows that affect productivity by using industry level data for machinery goods imports and productivity in eight OECD countries between 1970-91. First evidence that these countries benefit more from domestic R&D than from R&D of the average foreign country. Second, conditional on technology diffusion from domestic R&D composition of a country matters, but only if it is strongly biased towards or away from technological leaders. Third, I estimate that differences in technology inflows related to the countries' patterns of imports explain about 20% of the total variation in the countries' productivity growth. The implications of these findings for developing countries are discussed.

download in pdf format
   (1896 K)

email paper

This paper is available as PDF (1896 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w6990

Published: Wolfgang Keller. "Do Trade Patterns and Technology Flows Affect Productivity Growth?" World Bank Economic Review, Jan 2000; 14: 17 - 47.

Users who downloaded this paper also downloaded these:
Blonigen and Slaughter w7040 Foreign-Affiliate Activity and U.S. Skill Upgrading
Bernheim w7061 Taxation and Saving
Keller w8573 International Technology Diffusion
Keller w6113 Trade and Transmission of Technology
Keller w15442 International Trade, Foreign Direct Investment, and Technology Spillovers
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us