Flows of people, flows of ideas, and the inequality of nations

Carl-Johan Lars Dalgaard; Thomas  Barnebeck Andersen

doi:10.1007/s10887-011-9060-7

Flows of people, flows of ideas, and the inequality of nations

Carl-Johan Lars Dalgaard, Thomas Barnebeck Andersen

45 Citations (Scopus)

Abstract

The present paper examines a neglected determinant of aggregate productivity: temporary cross-border flows of people. We hypothesize that interaction between people from different nations facilitates the international diffusion of ideas, thus stimulating aggregate productivity. In order to assess the causal impact of people flows on productivity, we construct an instrument for people flows. By analogy to the trade/growth literature, this instrument is derived from a fitted gravity equation involving geographic determinants of bilateral travel flows. Our cross-section analysis reveal that greater international interaction leads to higher productivity; a very similar result, qualitatively as well as quantitatively, is obtained when we employ dynamic panel data methods for the purpose of identification.

Original language	English
Journal	Journal of Economic Growth
Volume	16
Issue number	1
Pages (from-to)	1-32
Number of pages	32
ISSN	1381-4338
DOIs	https://doi.org/10.1007/s10887-011-9060-7
Publication status	Published - Mar 2011

Keywords

Faculty of Social Sciences

Access to Document

10.1007/s10887-011-9060-7

Cite this

@article{aad56fc8c6324cbeac16d8ef3522f755,

title = "Flows of people, flows of ideas, and the inequality of nations",

abstract = "The present paper examines a neglected determinant of aggregate productivity: temporary cross-border flows of people. We hypothesize that interaction between people from different nations facilitates the international diffusion of ideas, thus stimulating aggregate productivity. In order to assess the causal impact of people flows on productivity, we construct an instrument for people flows. By analogy to the trade/growth literature, this instrument is derived from a fitted gravity equation involving geographic determinants of bilateral travel flows. Our cross-section analysis reveal that greater international interaction leads to higher productivity; a very similar result, qualitatively as well as quantitatively, is obtained when we employ dynamic panel data methods for the purpose of identification.",

keywords = "Faculty of Social Sciences, technology diffusion, international travel, productivity, IV estimation",

author = "Dalgaard, {Carl-Johan Lars} and {Barnebeck Andersen}, Thomas",

note = "JEL Classification: O33, O47, C21",

year = "2011",

month = mar,

doi = "10.1007/s10887-011-9060-7",

language = "English",

volume = "16",

pages = "1--32",

journal = "Journal of Economic Growth",

issn = "1381-4338",

publisher = "Springer",

number = "1",

}

TY - JOUR

T1 - Flows of people, flows of ideas, and the inequality of nations

AU - Dalgaard, Carl-Johan Lars

AU - Barnebeck Andersen, Thomas

N1 - JEL Classification: O33, O47, C21

PY - 2011/3

Y1 - 2011/3

N2 - The present paper examines a neglected determinant of aggregate productivity: temporary cross-border flows of people. We hypothesize that interaction between people from different nations facilitates the international diffusion of ideas, thus stimulating aggregate productivity. In order to assess the causal impact of people flows on productivity, we construct an instrument for people flows. By analogy to the trade/growth literature, this instrument is derived from a fitted gravity equation involving geographic determinants of bilateral travel flows. Our cross-section analysis reveal that greater international interaction leads to higher productivity; a very similar result, qualitatively as well as quantitatively, is obtained when we employ dynamic panel data methods for the purpose of identification.

AB - The present paper examines a neglected determinant of aggregate productivity: temporary cross-border flows of people. We hypothesize that interaction between people from different nations facilitates the international diffusion of ideas, thus stimulating aggregate productivity. In order to assess the causal impact of people flows on productivity, we construct an instrument for people flows. By analogy to the trade/growth literature, this instrument is derived from a fitted gravity equation involving geographic determinants of bilateral travel flows. Our cross-section analysis reveal that greater international interaction leads to higher productivity; a very similar result, qualitatively as well as quantitatively, is obtained when we employ dynamic panel data methods for the purpose of identification.

KW - Faculty of Social Sciences

KW - technology diffusion

KW - international travel

KW - productivity

KW - IV estimation

U2 - 10.1007/s10887-011-9060-7

DO - 10.1007/s10887-011-9060-7

M3 - Journal article

SN - 1381-4338

VL - 16

SP - 1

EP - 32

JO - Journal of Economic Growth

JF - Journal of Economic Growth

IS - 1

ER -