Flows of people, flows of ideas, and the inequality of nations
Research output: Contribution to journal › Journal article › Research › peer-review
Standard
Flows of people, flows of ideas, and the inequality of nations. / Dalgaard, Carl-Johan Lars; Barnebeck Andersen, Thomas .
In: Journal of Economic Growth, Vol. 16, No. 1, 2011, p. 1-32.Research output: Contribution to journal › Journal article › Research › peer-review
Harvard
APA
Vancouver
Author
Bibtex
}
RIS
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
Y1 - 2011
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
VL - 16
SP - 1
EP - 32
JO - Journal of Economic Growth
JF - Journal of Economic Growth
SN - 1381-4338
IS - 1
ER -
ID: 32436259