TY  - RPRT
        AU  - Schiff, Maurice
AU  - Wang, Yanling
        TI  - North-South Technology Diffusion, Regional Integration, and the Dynamics of the “Natural Trading Partners” Hypothesis
        PY  - 2004/Nov/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1384
        UR  - https://www.iza.org/publications/dp1384
        AB  - 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.
        KW  - Mexico
KW  - Poland
KW  - Korea
KW  - North-South technology diffusion
KW  - natural trading partners
KW  - productivity
KW  - regional integration
        ER  -