The Impact of Import vs. Export Competition in Technology Flows between Countries

Discussion Papers

No.654

by Kaoru Nabeshima, Mila Kashcheeva, and Byeongwoo Kang

April 2017

ABSTRACT

Many countries are interested in strengthening their technological capabilities to achieve high growth rates. Knowledge flow is a key to build technological capabilities. This paper investigates how competition in international trades affects knowledge flow between countries. There are two findings. First, the results in the current paper shows that import is indeed an important avenue for knowledge flow, conforming with the results from the previous literature.  Second, what is interesting and new is that export competition in the third market (in our study, the US market) seems to also have a positive impact on the flow of knowledge. The finding from this study contributes to the debate on "learning-by-exporting".

Keywords: International trade, knowledge flow, learning-by-export, East Asia
JEL classification: F14, D83, O53

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