Bahar, Dany; Hausmann, Ricardo; Hidalgo, Cesar A. - In: Journal of International Economics 92 (2014) 1, pp. 111-123
The literature on knowledge diffusion shows that knowledge decays strongly with distance. In this paper we document that the probability that a product is added to a country's export basket is, on average, 65% larger if a neighboring country is a successful exporter of that same product. For...