@TechReport{iza:izadps:dp1384,
            	author={Schiff, Maurice and Wang, Yanling},
            	title={North-South Technology Diffusion, Regional Integration, and the Dynamics of the “Natural Trading Partners” Hypothesis},
            	year={2004},
	month={Nov},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={1384},
            	url={https://www.iza.org/publications/dp1384},
	abstract={Based on static analysis, a number of studies argue that forming a 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 TFP in
Korea, Mexico and Poland. Using industry-level data, we show that i) technology diffusion
and productivity gains tend to be regional: Korea (Mexico) (Poland) benefits mainly from
trade with Japan (North America) (the EU); and ii) the dynamic version of the “natural trading
partners” hypothesis seems to hold for Korea and Mexico though not necessarily for Poland.},
	keywords={Mexico;Poland;Korea;North-South technology diffusion;natural trading partners;productivity;regional integration},
            }