Regional Integration and Technology Diffusion : The Case of the North America Free Trade Agreement
The literature on regional integration agreements (RIAs) is vast and deals with political, economic, and political economy issues. The literature on the economics of RIAs deals mostly with static effects, and concludes that these effects are, in ge...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2003/09/2516828/regional-integration-technology-diffusion-case-north-america-free-trade-agreement http://hdl.handle.net/10986/18110 |
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okr-10986-181102021-04-23T14:03:41Z Regional Integration and Technology Diffusion : The Case of the North America Free Trade Agreement Schiff, Maurice Wang, Yanling POLITICAL ISSUES ECONOMIC ISSUES TECHNOLOGY DIFFUSION FREE TRADE AREAS DATA SOURCES REGRESSION ANALYSIS ECONOMIC GROWTH FACTOR PRODUCTIVITY APPAREL ASSISTANCE BASE YEAR BILATERAL INVESTMENT BILATERAL INVESTMENT TREATIES BLOC WELFARE CONSTANT RETURNS TO SCALE COST FUNCTIONS COUNTRY OF ORIGIN DEVELOPED COUNTRIES DEVELOPMENT DYNAMIC EFFECTS ECONOMETRIC ANALYSIS ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC IMPACT ECONOMISTS ELASTICITIES ELASTICITY EMPIRICAL ANALYSIS EMPIRICAL STUDIES ENDOGENOUS GROWTH ENDOGENOUS GROWTH THEORY EQUILIBRIUM EXPENDITURES FINANCIAL SERVICES FOREIGN DIRECT INVESTMENT FREE TRADE FREE TRADE AGREEMENT GDP GENERAL EQUILIBRIUM ANALYSIS GEOGRAPHIC LOCALIZATION GLOBAL ECONOMY GLOBAL TRADE GLOBAL TRADE ANALYSIS GROWTH MODEL GROWTH THEORY HUMAN CAPITAL IMPACT OF TRADE IMPACT OF TRADE DIVERSION IMPERFECT COMPETITION IMPORTED GOODS IMPORTING COUNTRIES IMPORTING COUNTRY IMPORTS INCOME INCOME CONVERGENCE INCREASING RETURNS INCREASING RETURNS TO SCALE INTERMEDIATE GOODS INTERNATIONAL STANDARD INTERNATIONAL TRADE INVESTMENT TREATIES KNOWLEDGE CAPITAL LABOR FORCE LOCALIZATION MEASURE OF TRADE MEMBER COUNTRIES MEMBER COUNTRY METAL PRODUCTS METALS MONETARY ECONOMICS MULTILATERALISM NONTARIFF BARRIERS OPEN ECONOMY OPENNESS PARTNER COUNTRIES PER CAPITA INCOMES POLITICAL ECONOMY PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENTS PREFERENTIAL TRADING PREFERENTIAL TRADING AREAS PRODUCTION STRUCTURE PRODUCTIVITY REGIONAL INTEGRATION REGIONAL INTEGRATION AGREEMENTS REGIONALISM STATIC EFFECTS STRUCTURAL REFORMS TECHNICAL CHANGE TECHNOLOGICAL KNOW-HOW TECHNOLOGICAL PROGRESS TECHNOLOGY DIFFUSION TECHNOLOGY TRANSFERS THEORETICAL MODELS TOTAL FACTOR PRODUCTIVITY TRADE TRADE TRADE AGREEMENT TRADE BARRIERS TRADE BLOCS TRADE CREATION TRADE DATA TRADE DIVERSION TRADE LIBERALIZATION TRADE PARTNERS TRADE PATTERNS TRADE POLICY TRADE UNIT TRADING PARTNERS TRANSMISSION OF TECHNOLOGY UNILATERAL LIBERALIZATION VALUE ADDED WELFARE LOSSES WORLD ECONOMY APPAREL FACTOR PRODUCTIVITY The literature on regional integration agreements (RIAs) is vast and deals with political, economic, and political economy issues. The literature on the economics of RIAs deals mostly with static effects, and concludes that these effects are, in general, ambiguous. So far there has been no empirical analysis of the dynamic effects of RIAs based on their impact on technology diffusion from partner and nonpartner countries. Schiff and Wang's paper is a first attempt in this direction. The authors examine the impact of the North America Free Trade Agreement (NAFTA) on total factor productivity in Mexico through its impact on trade-related technology transfers from OECD countries. They estimate trade-related technology diffusion by using a measure of trade-related foreign research and development (R&D). Foreign R&D is constructed based on industry-specific R&D in the OECD, OECD-Mexico trade patterns, and input-output relations in Mexico. The authors find that: Mexico's trade with its NAFTA partners had a large and significant impact on Mexico's total factor productivity, while trade with the rest of the OECD did not. Simulating the impact of NAFTA has led to a permanent increase in total factor productivity in Mexico's manufacturing sector of between 5.5 percent and 7.5 percent and to some convergence with the economies of Canada and the United States. 2014-04-30T18:54:20Z 2014-04-30T18:54:20Z 2003-09 http://documents.worldbank.org/curated/en/2003/09/2516828/regional-integration-technology-diffusion-case-north-america-free-trade-agreement http://hdl.handle.net/10986/18110 English en_US Policy Research Working Paper;No. 3132 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean North America Mexico |
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Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
POLITICAL ISSUES ECONOMIC ISSUES TECHNOLOGY DIFFUSION FREE TRADE AREAS DATA SOURCES REGRESSION ANALYSIS ECONOMIC GROWTH FACTOR PRODUCTIVITY APPAREL ASSISTANCE BASE YEAR BILATERAL INVESTMENT BILATERAL INVESTMENT TREATIES BLOC WELFARE CONSTANT RETURNS TO SCALE COST FUNCTIONS COUNTRY OF ORIGIN DEVELOPED COUNTRIES DEVELOPMENT DYNAMIC EFFECTS ECONOMETRIC ANALYSIS ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC IMPACT ECONOMISTS ELASTICITIES ELASTICITY EMPIRICAL ANALYSIS EMPIRICAL STUDIES ENDOGENOUS GROWTH ENDOGENOUS GROWTH THEORY EQUILIBRIUM EXPENDITURES FINANCIAL SERVICES FOREIGN DIRECT INVESTMENT FREE TRADE FREE TRADE AGREEMENT GDP GENERAL EQUILIBRIUM ANALYSIS GEOGRAPHIC LOCALIZATION GLOBAL ECONOMY GLOBAL TRADE GLOBAL TRADE ANALYSIS GROWTH MODEL GROWTH THEORY HUMAN CAPITAL IMPACT OF TRADE IMPACT OF TRADE DIVERSION IMPERFECT COMPETITION IMPORTED GOODS IMPORTING COUNTRIES IMPORTING COUNTRY IMPORTS INCOME INCOME CONVERGENCE INCREASING RETURNS INCREASING RETURNS TO SCALE INTERMEDIATE GOODS INTERNATIONAL STANDARD INTERNATIONAL TRADE INVESTMENT TREATIES KNOWLEDGE CAPITAL LABOR FORCE LOCALIZATION MEASURE OF TRADE MEMBER COUNTRIES MEMBER COUNTRY METAL PRODUCTS METALS MONETARY ECONOMICS MULTILATERALISM NONTARIFF BARRIERS OPEN ECONOMY OPENNESS PARTNER COUNTRIES PER CAPITA INCOMES POLITICAL ECONOMY PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENTS PREFERENTIAL TRADING PREFERENTIAL TRADING AREAS PRODUCTION STRUCTURE PRODUCTIVITY REGIONAL INTEGRATION REGIONAL INTEGRATION AGREEMENTS REGIONALISM STATIC EFFECTS STRUCTURAL REFORMS TECHNICAL CHANGE TECHNOLOGICAL KNOW-HOW TECHNOLOGICAL PROGRESS TECHNOLOGY DIFFUSION TECHNOLOGY TRANSFERS THEORETICAL MODELS TOTAL FACTOR PRODUCTIVITY TRADE TRADE TRADE AGREEMENT TRADE BARRIERS TRADE BLOCS TRADE CREATION TRADE DATA TRADE DIVERSION TRADE LIBERALIZATION TRADE PARTNERS TRADE PATTERNS TRADE POLICY TRADE UNIT TRADING PARTNERS TRANSMISSION OF TECHNOLOGY UNILATERAL LIBERALIZATION VALUE ADDED WELFARE LOSSES WORLD ECONOMY APPAREL FACTOR PRODUCTIVITY |
| spellingShingle |
POLITICAL ISSUES ECONOMIC ISSUES TECHNOLOGY DIFFUSION FREE TRADE AREAS DATA SOURCES REGRESSION ANALYSIS ECONOMIC GROWTH FACTOR PRODUCTIVITY APPAREL ASSISTANCE BASE YEAR BILATERAL INVESTMENT BILATERAL INVESTMENT TREATIES BLOC WELFARE CONSTANT RETURNS TO SCALE COST FUNCTIONS COUNTRY OF ORIGIN DEVELOPED COUNTRIES DEVELOPMENT DYNAMIC EFFECTS ECONOMETRIC ANALYSIS ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC IMPACT ECONOMISTS ELASTICITIES ELASTICITY EMPIRICAL ANALYSIS EMPIRICAL STUDIES ENDOGENOUS GROWTH ENDOGENOUS GROWTH THEORY EQUILIBRIUM EXPENDITURES FINANCIAL SERVICES FOREIGN DIRECT INVESTMENT FREE TRADE FREE TRADE AGREEMENT GDP GENERAL EQUILIBRIUM ANALYSIS GEOGRAPHIC LOCALIZATION GLOBAL ECONOMY GLOBAL TRADE GLOBAL TRADE ANALYSIS GROWTH MODEL GROWTH THEORY HUMAN CAPITAL IMPACT OF TRADE IMPACT OF TRADE DIVERSION IMPERFECT COMPETITION IMPORTED GOODS IMPORTING COUNTRIES IMPORTING COUNTRY IMPORTS INCOME INCOME CONVERGENCE INCREASING RETURNS INCREASING RETURNS TO SCALE INTERMEDIATE GOODS INTERNATIONAL STANDARD INTERNATIONAL TRADE INVESTMENT TREATIES KNOWLEDGE CAPITAL LABOR FORCE LOCALIZATION MEASURE OF TRADE MEMBER COUNTRIES MEMBER COUNTRY METAL PRODUCTS METALS MONETARY ECONOMICS MULTILATERALISM NONTARIFF BARRIERS OPEN ECONOMY OPENNESS PARTNER COUNTRIES PER CAPITA INCOMES POLITICAL ECONOMY PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENTS PREFERENTIAL TRADING PREFERENTIAL TRADING AREAS PRODUCTION STRUCTURE PRODUCTIVITY REGIONAL INTEGRATION REGIONAL INTEGRATION AGREEMENTS REGIONALISM STATIC EFFECTS STRUCTURAL REFORMS TECHNICAL CHANGE TECHNOLOGICAL KNOW-HOW TECHNOLOGICAL PROGRESS TECHNOLOGY DIFFUSION TECHNOLOGY TRANSFERS THEORETICAL MODELS TOTAL FACTOR PRODUCTIVITY TRADE TRADE TRADE AGREEMENT TRADE BARRIERS TRADE BLOCS TRADE CREATION TRADE DATA TRADE DIVERSION TRADE LIBERALIZATION TRADE PARTNERS TRADE PATTERNS TRADE POLICY TRADE UNIT TRADING PARTNERS TRANSMISSION OF TECHNOLOGY UNILATERAL LIBERALIZATION VALUE ADDED WELFARE LOSSES WORLD ECONOMY APPAREL FACTOR PRODUCTIVITY Schiff, Maurice Wang, Yanling Regional Integration and Technology Diffusion : The Case of the North America Free Trade Agreement |
| geographic_facet |
Latin America & Caribbean North America Mexico |
| relation |
Policy Research Working Paper;No. 3132 |
| description |
The literature on regional integration
agreements (RIAs) is vast and deals with political,
economic, and political economy issues. The literature on
the economics of RIAs deals mostly with static effects, and
concludes that these effects are, in general, ambiguous. So
far there has been no empirical analysis of the dynamic
effects of RIAs based on their impact on technology
diffusion from partner and nonpartner countries. Schiff and
Wang's paper is a first attempt in this direction. The
authors examine the impact of the North America Free Trade
Agreement (NAFTA) on total factor productivity in Mexico
through its impact on trade-related technology transfers
from OECD countries. They estimate trade-related technology
diffusion by using a measure of trade-related foreign
research and development (R&D). Foreign R&D is
constructed based on industry-specific R&D in the OECD,
OECD-Mexico trade patterns, and input-output relations in
Mexico. The authors find that: Mexico's trade with its
NAFTA partners had a large and significant impact on
Mexico's total factor productivity, while trade with
the rest of the OECD did not. Simulating the impact of NAFTA
has led to a permanent increase in total factor productivity
in Mexico's manufacturing sector of between 5.5 percent
and 7.5 percent and to some convergence with the economies
of Canada and the United States. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Schiff, Maurice Wang, Yanling |
| author_facet |
Schiff, Maurice Wang, Yanling |
| author_sort |
Schiff, Maurice |
| title |
Regional Integration and Technology Diffusion : The Case of the North America Free Trade Agreement |
| title_short |
Regional Integration and Technology Diffusion : The Case of the North America Free Trade Agreement |
| title_full |
Regional Integration and Technology Diffusion : The Case of the North America Free Trade Agreement |
| title_fullStr |
Regional Integration and Technology Diffusion : The Case of the North America Free Trade Agreement |
| title_full_unstemmed |
Regional Integration and Technology Diffusion : The Case of the North America Free Trade Agreement |
| title_sort |
regional integration and technology diffusion : the case of the north america free trade agreement |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2003/09/2516828/regional-integration-technology-diffusion-case-north-america-free-trade-agreement http://hdl.handle.net/10986/18110 |
| _version_ |
1764438872399282176 |