Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
962471 | Journal of International Economics | 2014 | 13 Pages |
Abstract
The literature on knowledge diffusion shows that knowledge 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, growth of exports in a country is 1.5% higher per annum if it has a neighbor with comparative advantage in these products. While these results could be driven by a common third factor that escapes our controls, they align with our expectations of the localized character of knowledge diffusion.
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Authors
Dany Bahar, Ricardo Hausmann, Cesar A. Hidalgo,