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The Role of Inter- and Intraindustry Trade in Technology Diffusion
Author:
Ms. Dalia S Hakura
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Ms. Florence Jaumotte null

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Series:
IMF Working Papers
Volume/Issue:
Volume 1999: Issue 058
Language:
English
Publication Date:
01 Apr 1999
DOI:
https://doi.org/10.5089/9781451847840.001
ISBN:
9781451847840
ISSN:
1018-5941
Pages:
29
Keywords:
WP; industry trade; IIT index; significance level; Technology spillovers; Intraindustry Trade; Interindustry Trade; trade sector; trade index; sectors to TFP gap; Total factor productivity; Imports; Technology transfer; Exports; Sub-Saharan Africa; East Asia; South Asia; Middle East; North Africa
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Research shows that international trade is an important channel for the transfer of technology. Building on this evidence, this paper examines the effects of inter- and intraindustry trade on technology transfer. The paper develops and tests the hypothesis that intraindustry trade stimulates more technology transfer than interindustry trade because countries are likely to absorb foreign technologies more easily when their imports are from the same sectors as their production and export sectors. The results of empirical tests for 87 countries during 1970–93 support this hypothesis.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund