Knowledge Spillovers, Trade, and Foreign Direct Investment
I study knowledge spillovers, positive externalities that augment the information set of an economic agent, and reviews the evidence on such spillovers in the context of international economic transactions. Even though spillovers are by their very nature difficult to identify, over recent decades a number of advances-conceptual, empirical, as well as in form of new data–have produced robust evidence that both trade and foreign direct investment lead to sizable knowledge spillovers.
I have no financial relationships regarding this research to report. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.