International trade is a major channel for technology diffusion. However regressing trade in R&D intensive goods to evaluate the effect of technology imports on productivity in a cross section of countries may be misleading because of simultaneity bias. I identify the effect of technology trade...

Recent evidence on the respective contributions of institutions and trade to income levels across countries has demonstrated that – once endogeneity is considered – institutional quality clearly dominates the effect of trade. We argue that overall trade is not the most appropriate measure...