This paper investigates the effects on total factor productivity (TFP) in the South of technology developed in the North that is diffused through international trade, foreign direct investment (FDI) and international call traffic (telephone communications). For each developing country in the...

We consider two channels via which foreign inputs into industrial production may lead to productivity effects. The first one concerns dynamic externalities between firms which share technical and organizational knowledge which is vital for the productivity growth of a particular industry. We...