Heterogeneous Technology Diffusion and Ricardian Trade Patterns
This study tests the importance of Ricardian technology differences for international trade. The empirical analysis has three comparative advantages: including emerging and advanced economies, isolating panel variation regarding the link between productivity and exports, and exploiting heterogeneous technology diffusion from immigrant communities in the United States for identification. The latter instruments are developed by combining panel variation on the development of new technologies across U.S. cities with historical settlement patterns for migrants from countries. The instrumented elasticity of export growth on the intensive margin with respect to the exporter's productivity growth is between 1.6 and 2.4 depending upon weighting.
Comments are appreciated and can be sent to email@example.com. I am grateful to Daron Acemoglu, Pol Antras, David Autor, Nick Bloom, Ricardo Caballero, Arnaud Costinot, Julian Di Giovanni, Fritz Foley, Richard Freeman, Ashley Lester, Matt Mitchell, Peter Morrow, Ramana Nanda, Tim Simcoe, Antonio Spilimbergo, Scott Stern, and John Van Reneen for advice on this project and to seminar participants at the American Economic Association meetings, Clemson University, European Regional Science Association meetings, Georgetown University, Harvard University, International Monetary Fund, London School of Economics, MIT Economics, MIT Sloan, NBER High Skilled Immigration Conference, NBER Productivity, Queens University, University of California Davis, University of Helsinki, and University of Toronto Rotman for helpful comments. This paper is a substantial revision of Chapter 2 of my Ph.D. dissertation (Kerr 2005). This research is supported by the National Science Foundation, MIT George Schultz Fund, HBS Research, and the Innovation Policy and Economy Group. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.
William R Kerr, 2018. "Heterogeneous Technology Diffusion and Ricardian Trade Patterns," The World Bank Economic Review, vol 32(1), pages 163-182. citation courtesy of