North-South Technology Diffusion, Regional Integration, and the Dynamics of the Natural Trading Partners Hypothesis
Based on static analysis, a number of studies argue that forming a regional trade agreement is more likely to raise welfare if member countries are "natural trading partners," while other studies claim that the opposite is true. Schiff an...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/10/5263709/north-south-technology-diffusion-regional-integration-dynamics-natural-trading-partners-hypothesis http://hdl.handle.net/10986/14237 |
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okr-10986-142372021-04-23T14:03:21Z North-South Technology Diffusion, Regional Integration, and the Dynamics of the Natural Trading Partners Hypothesis Schiff, Maurice Wang, Yanling BILATERAL TRADE CAPITAL GOODS CONSTRUCTION CUSTOMS CUSTOMS UNIONS DEVELOPED COUNTRIES DEVELOPING COUNTRIES ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMICS ELASTICITIES ELASTICITY EMPIRICAL WORK EXPENDITURES FREE TRADE FREE TRADE AREAS GDP HUMAN CAPITAL IMPORTS INNOVATION INTERMEDIATE GOODS INTERMEDIATE INPUTS INTERNATIONAL TRADE IRON LATIN AMERICAN METALS MULTILATERAL TRADE MULTILATERAL TRADE NEGOTIATIONS PETROLEUM PETROLEUM REFINERIES POLITICAL ECONOMY PRODUCTIVITY SPILLOVERS STATIC ANALYSIS TECHNICAL CHANGE TERMS OF TRADE TOTAL FACTOR PRODUCTIVITY TRADE AGREEMENTS TRADE DIVERSION TRADE NEGOTIATIONS TRADE POLICY TRADE VOLUME VALUE ADDED WHITE NOISE Based on static analysis, a number of studies argue that forming a regional trade agreement is more likely to raise welfare if member countries are "natural trading partners," while other studies claim that the opposite is true. Schiff and Wang look at the argument from a dynamic viewpoint by examining the impact of North-South trade on technology diffusion and total factor productivity (TFP) in the South. Specifically, it examines the impact on TFP in the Republic of Korea, Mexico, and Poland of trade with Japan, Canada plus the United States (North America) and the European Union. Using industry-level data, they find that (1) technology diffusion and productivity gains tend to be regional: Korea benefits mainly from trade with Japan, Mexico with the United States, and Poland with the European Union; and (2) though these results suggest that the dynamic version of the "natural trading partners" hypothesis holds for all three countries, careful analysis shows that it holds for Korea and Mexico but not necessarily for Poland. 2013-06-27T16:59:02Z 2013-06-27T16:59:02Z 2004-10 http://documents.worldbank.org/curated/en/2004/10/5263709/north-south-technology-diffusion-regional-integration-dynamics-natural-trading-partners-hypothesis http://hdl.handle.net/10986/14237 English en_US Policy Research Working Paper;No.3434 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
BILATERAL TRADE CAPITAL GOODS CONSTRUCTION CUSTOMS CUSTOMS UNIONS DEVELOPED COUNTRIES DEVELOPING COUNTRIES ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMICS ELASTICITIES ELASTICITY EMPIRICAL WORK EXPENDITURES FREE TRADE FREE TRADE AREAS GDP HUMAN CAPITAL IMPORTS INNOVATION INTERMEDIATE GOODS INTERMEDIATE INPUTS INTERNATIONAL TRADE IRON LATIN AMERICAN METALS MULTILATERAL TRADE MULTILATERAL TRADE NEGOTIATIONS PETROLEUM PETROLEUM REFINERIES POLITICAL ECONOMY PRODUCTIVITY SPILLOVERS STATIC ANALYSIS TECHNICAL CHANGE TERMS OF TRADE TOTAL FACTOR PRODUCTIVITY TRADE AGREEMENTS TRADE DIVERSION TRADE NEGOTIATIONS TRADE POLICY TRADE VOLUME VALUE ADDED WHITE NOISE |
| spellingShingle |
BILATERAL TRADE CAPITAL GOODS CONSTRUCTION CUSTOMS CUSTOMS UNIONS DEVELOPED COUNTRIES DEVELOPING COUNTRIES ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMICS ELASTICITIES ELASTICITY EMPIRICAL WORK EXPENDITURES FREE TRADE FREE TRADE AREAS GDP HUMAN CAPITAL IMPORTS INNOVATION INTERMEDIATE GOODS INTERMEDIATE INPUTS INTERNATIONAL TRADE IRON LATIN AMERICAN METALS MULTILATERAL TRADE MULTILATERAL TRADE NEGOTIATIONS PETROLEUM PETROLEUM REFINERIES POLITICAL ECONOMY PRODUCTIVITY SPILLOVERS STATIC ANALYSIS TECHNICAL CHANGE TERMS OF TRADE TOTAL FACTOR PRODUCTIVITY TRADE AGREEMENTS TRADE DIVERSION TRADE NEGOTIATIONS TRADE POLICY TRADE VOLUME VALUE ADDED WHITE NOISE Schiff, Maurice Wang, Yanling North-South Technology Diffusion, Regional Integration, and the Dynamics of the Natural Trading Partners Hypothesis |
| relation |
Policy Research Working Paper;No.3434 |
| description |
Based on static analysis, a number of
studies argue that forming a regional trade agreement is
more likely to raise welfare if member countries are
"natural trading partners," while other studies
claim that the opposite is true. Schiff and Wang look at the
argument from a dynamic viewpoint by examining the impact of
North-South trade on technology diffusion and total factor
productivity (TFP) in the South. Specifically, it examines
the impact on TFP in the Republic of Korea, Mexico, and
Poland of trade with Japan, Canada plus the United States
(North America) and the European Union. Using industry-level
data, they find that (1) technology diffusion and
productivity gains tend to be regional: Korea benefits
mainly from trade with Japan, Mexico with the United States,
and Poland with the European Union; and (2) though these
results suggest that the dynamic version of the
"natural trading partners" hypothesis holds for
all three countries, careful analysis shows that it holds
for Korea and Mexico but not necessarily for Poland. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Schiff, Maurice Wang, Yanling |
| author_facet |
Schiff, Maurice Wang, Yanling |
| author_sort |
Schiff, Maurice |
| title |
North-South Technology Diffusion, Regional Integration, and the Dynamics of the Natural Trading Partners Hypothesis |
| title_short |
North-South Technology Diffusion, Regional Integration, and the Dynamics of the Natural Trading Partners Hypothesis |
| title_full |
North-South Technology Diffusion, Regional Integration, and the Dynamics of the Natural Trading Partners Hypothesis |
| title_fullStr |
North-South Technology Diffusion, Regional Integration, and the Dynamics of the Natural Trading Partners Hypothesis |
| title_full_unstemmed |
North-South Technology Diffusion, Regional Integration, and the Dynamics of the Natural Trading Partners Hypothesis |
| title_sort |
north-south technology diffusion, regional integration, and the dynamics of the natural trading partners hypothesis |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/10/5263709/north-south-technology-diffusion-regional-integration-dynamics-natural-trading-partners-hypothesis http://hdl.handle.net/10986/14237 |
| _version_ |
1764430819499180032 |