Cross-Border Flows of People, Technology Diffusion and Aggregate Productivity

TY - UNPB

T1 - Cross-Border Flows of People, Technology Diffusion and Aggregate Productivity

AU - Dalgaard, Carl-Johan Lars

AU - Andersen, Thomas Barnebeck

N1 - JEL Classification: O33, O47, C21

PY - 2006

Y1 - 2006

N2 - A number of empirical studies have investigated the hypothesis that cross-border flows of goods (international trade) and capital (FDI) lead to international technology diffusion. The contribution of the present paper consists in examining an as yet neglected vehicle for technology diffusion: cross-border flows of people. We find that increasing the intensity of international travel, for the purpose of business and otherwise, by 1% increases the level of aggregate total factor productivity and GDP per worker by roughly 0.2%.

AB - A number of empirical studies have investigated the hypothesis that cross-border flows of goods (international trade) and capital (FDI) lead to international technology diffusion. The contribution of the present paper consists in examining an as yet neglected vehicle for technology diffusion: cross-border flows of people. We find that increasing the intensity of international travel, for the purpose of business and otherwise, by 1% increases the level of aggregate total factor productivity and GDP per worker by roughly 0.2%.

KW - Faculty of Social Sciences

KW - technology diffusion

KW - productivity

KW - IV estimation

M3 - Working paper

BT - Cross-Border Flows of People, Technology Diffusion and Aggregate Productivity

PB - Department of Economics, University of Copenhagen

CY - Cph.

ER -