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Revue d'économie du développement
De Boeck Université

I.S.B.N.2804159658
112 pages

p. 69 à 84
doi: 10.3917/edd.215.0069

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Vol. 21 2007/5

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North-South technology diffusion, regional integration, and the dynamics of the “natural trading partners” hypothesis

Maurice Schiff Yanling Wang

Résumé de l'article

Based on static analysis, a number of studies argue that forming a regional trade agreement (RTA) is more likely to raise welfare if member countries are “natural trading partners,” while other studies claim the opposite. This paper considers the argument from a dynamic viewpoint by examining the impact of trade with Japan, North America and the EU on technology diffusion and total factor productivity (TFP) in Jordan, Korea and Mexico. Using industry-level data, we show that: i) technology diffusion and productivity gains tend to be regional: Jordan, Korea, and Mexico tend to benefit mainly from trade with the EU, Japan, and North America respectively; and ii) the dynamic version of the “natural trading partners” hypothesis seems to hold.
JEL Classification: F02, F13, F15, F43, O39Keywords : North-South technology diffusion, productivity, regional integration, natural trading partners, Korea, Mexico.

Plan de l'article

• Introduction

• Analytical framework

• Data description

• Empirical results

— Korea

— Mexico

— Jordan

• Interpretation of the results

• Implications for the “Natural Trading Partners” hypothesis

• Concluding remarks

• References

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