%0 Report
        %A Schiff, Maurice
%A Wang, Yanling
        %T North-South Technology Diffusion, Regional Integration, and the Dynamics of the “Natural Trading Partners” Hypothesis
        %D 2004
        %8 2004 Nov
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 1384
        %U https://www.iza.org/publications/dp1384
        %X 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.
        %K Mexico
%K Poland
%K Korea
%K North-South technology diffusion
%K natural trading partners
%K productivity
%K regional integration