On the Quantity and Quality of Knowledge: The Impact of Openness and Foreign Research and Development on North-North and North-South Technology Spillovers
Knowledge accumulation means either new knowledge (an increase in its quality), greater access to existing knowledge (an increase in its quantity), or both. The authors examine the relative contribution of these two components of knowledge to total...
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| Language: | English en_US |
| Published: |
World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/01/3028512/quantity-quality-knowledge-impact-openness-foreign-research-development-north-north-north-south-technology-spillovers http://hdl.handle.net/10986/14211 |
| Summary: | Knowledge accumulation means either new
knowledge (an increase in its quality), greater access to
existing knowledge (an increase in its quantity), or both.
The authors examine the relative contribution of these two
components of knowledge to total factor productivity (TFP)
for North-North and North-South trade-related knowledge
diffusion, with quantity, proxied by openness, and quality
by the research and development (R&D) content of trade.
The measure of foreign R&D used in the literature on
trade-related knowledge diffusion, imposes equal
contributions to TFP of openness, and of R&D content of
trade. The authors' analysis show that R&D has a
greater impact on TFP, than openness for North-North trade
and, conversely, openness has a greater impact on TFP, than
R&D for North-South trade. These results imply that the
impact of openness on TFP in developing (industrial)
countries is larger (smaller) than previously obtained in
this literature, and that developing countries can obtain
larger productivity gains from trade liberalization than
previously thought. |
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