This paper examines the impact of North-South trade-related technology diffusion on TFP growth in small and large … states in the South. The main findings are: i) TFP growth increases with North-South trade-related technology diffusion, with …

) of trade-related foreign R&D (NRD), education and governance. The measures of NRD are constructed based on industry …-specific R&D in the North, North-South trade patterns, and input-output relations in the South. The main findings are: i … variables – education, governance or openness – result in virtuous growth cycles. These are smallest under an increase in trade …