Template-Type: ReDIF-Paper 1.0
Author-Name: Dany Bahar
Author-Workplace-Name: Center for International Development at Harvard University
Author-Person: pba1149
Author-Name: Ricardo Hausmann
Author-Email: ricardo_hausmann@harvard.edu
Author-Workplace-Name: Harvard's Growth Lab
Author-Person: pha552
Author-Name: Cesar A. Hidalgo
Author-Person: phi113
Title: Neighbors and the Evolution of the Comparative Advantage of Nations: Evidence of International Knowledge Diffusion?
Abstract: The literature on knowledge diffusion shows that it decays strongly with distance. In this paper we document that the probability that a product is added to a country’s export basket is, on average, 65% larger if a neighboring country is a successful exporter of that same product. For existing products, having a neighbor with comparative advantage in them is associated with a growth of exports that is higher by 1.5 percent per annum. While these results could be driven by a common third factor that escapes our controls, they are what would be expected from the localized character of knowledge diffusion.
Creation-Date: 2012-04
Classification-JEL: O31, O33, F10, F62, F63
Keywords: Export Similarity, Innovation, Productivity, Knowledge, Technology, Diffusion, Spillovers
Number: 35
Handle: RePEc:glh:wpfacu:35
File-Url: https://growthlab.hks.harvard.edu/sites/projects.iq.harvard.edu/files/growthlab/files/235_updated_bahar_hausmann.pdf
File-Format: application/pdf