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North--South Trade-related Technology Diffusion and Productivity Growth: Are Small States Different?

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  • Maurice Schiff
  • Yanling Wang

Abstract

The economies of small developing states tend to be more fragile than those in large ones. This paper examines this issue in a dynamic context by focusing on the impact of education and North--South trade-related technology diffusion (NRD) on TFP growth in small and large states in the South. The main findings are: (i) TFP growth increases with NRD , education and the interaction between the two; (ii) the impact of NRD , education and their interaction on TFP growth in small states is over three times that for large countries; and (iii) the greater TFP growth loss in small states has two brain--drain related causes: a substantially greater sensitivity of TFP growth to the brain drain, and brain drain levels that are much higher in small than in large states.

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  • Maurice Schiff & Yanling Wang, 2013. "North--South Trade-related Technology Diffusion and Productivity Growth: Are Small States Different?," International Economic Journal, Taylor & Francis Journals, vol. 27(3), pages 399-414, September.
    • Handle: RePEc:taf:intecj:v:27:y:2013:i:3:p:399-414
    DOI: 10.1080/10168737.2012.660180
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    3. Jeffrey A Edwards & Alfredo A. Romero, 2020. "Volatility, island nations and small states," Economics and Business Letters, Oviedo University Press, vol. 9(3), pages 248-254.

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