%0 Report
        %A Schiff, Maurice
%A Wang, Yanling
        %T Education, Governance, and Trade- and Distance-Related Technology Diffusion: Accounting for the Latin America-East Asia TFP Gap, and the TFP Impact of South America's Greater Distance to the North
        %D 2017
        %8 2017 Sep
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 11049
        %U https://www.iza.org/index.php/publications/dp11049
        %X This paper examines the impact of education, governance and North-South trade- and distance-related technology diffusion on TFP in the South, focusing on South America (SA), Mexico, Latin America (LA) and East Asia for the 32-year period preceding the Great Recession (1976–2007) in a new model that integrates models of trade-related and distance-related international technology diffusion. Our model's explanatory power is 38% (62%) greater than that of the main trade-related (distance-related) model.
Findings are: i) TFP increases with education, trade, governance (ETG) and imports' R&D content, and declines with distance to the North; ii) an increase in LA's ETG to East Asia's level raises LA's TFP by some 100% and accounts for about 75% of its TFP gap with East Asia; iii) raising LA's education to East Asia's level has a larger impact on TFP and on the TFP gap than raising governance or openness; iv) the TFP impact on South America relative to Mexico due to its greater distance to US-Canada (Europe) (Japan) is -18.9 (-2.13) (-9.78)%, with an overall impact of -12.4%.
        %K education
%K governance
%K trade
%K distance
%K technology diffusion
%K productivity impact
%K Latin America
%K East Asia