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Which indicators of absorptive capacity enhance import-induced South-North convergence in labor intensities?
Hübler, Michael
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Glas, Alexander
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URL:
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https://ub-madoc.bib.uni-mannheim.de/35275
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URN:
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urn:nbn:de:bsz:180-madoc-352758
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Dokumenttyp:
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Arbeitspapier
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Erscheinungsjahr:
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2013
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Titel einer Zeitschrift oder einer Reihe:
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ZEW Discussion Papers
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Band/Volume:
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13-102
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Ort der Veröffentlichung:
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Mannheim
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Sprache der Veröffentlichung:
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Englisch
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Einrichtung:
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Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
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MADOC-Schriftenreihe:
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Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
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Fachgebiet:
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330 Wirtschaft
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Fachklassifikation:
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JEL:
C23 , F18 , F21 , O13 , O33 , O47 , Q43,
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Freie Schlagwörter (Englisch):
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Absorptive capacity , labor intensity , trade , South-North , convergence
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Abstract:
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We hypothesize that North-South trade is associated with knowledge spillovers that
create labor productivity gains depending on various determinants of Southern absorptive
capacity. We use the novel World Input-Output Database (WIOD) that provides
bilateral and bisectoral panel data for 39 countries and 35 sectors for 1995-2009. We
examine growth in relative South-North labor intensities (South-North convergence)
for 31 industrialized source and eight emerging recipient countries. We find robust
evidence that the following measures of absorptive capacity (ordered by magnitude
of the estimated coefficients) interact with imports so that relative labor intensity
is reduced: economic freedom and political and civil rights, services, skills, scientific
publications and patents as well as telephone and internet access. GMM and GLS
estimations corroborate the results. Policies that support various of the identified
determinants of absorptive capacity are more promising than policies that select only
one. Elevating the absorptive capacity of emerging economies to the maximum level
in the world would halve the South-North gap in labor intensities within a couple of
decades if it were solely achieved through the trade channel.
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