2011
DOI: 10.1007/s10887-011-9060-7
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Flows of people, flows of ideas, and the inequality of nations

Abstract: The present paper examines a neglected determinant of aggregate productivity: temporary cross-border flows of people. We hypothesize that interaction between people from different nations facilitates the international diffusion of ideas, thus stimulating aggregate productivity. In order to assess the causal impact of people flows on productivity, we construct an instrument for people flows. By analogy to the trade/growth literature, this instrument is derived from a fitted gravity equation involving geographic… Show more

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Cited by 91 publications
(89 citation statements)
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References 52 publications
(52 reference statements)
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“…These values 4 As Weber points out, similar values were found among the Cluniacs. The impact of the Cluny order has received scant attention in the literature in comparison with the Cistercians.…”
supporting
confidence: 79%
See 1 more Smart Citation
“…These values 4 As Weber points out, similar values were found among the Cluniacs. The impact of the Cluny order has received scant attention in the literature in comparison with the Cistercians.…”
supporting
confidence: 79%
“…4 The emphasis on hard work and thrift made the Cistercians entrepreneurial and ultimately very successful economically (Baumol 1990). They contributed much as agriculturists and as horse and cattle breeders.…”
mentioning
confidence: 99%
“…This notion is supported by a series of recent studies documenting the importance of short-term (Andersen and Dalgaard, 2011;Hovhannisyan and Keller, 2015) and long-term (Ortega and Peri, 2014) cross-border flows of people for TFP growth and economic growth. These studies find simultaneously little support for openness to trade as a separate channel of knowledge diffusion, therewith corroborating Frankel and Romer's (1999) suspicion that it is the exchange of ideas trough communication and travel rather than the shipment of goods through which openness generates international productivity spillovers.…”
mentioning
confidence: 82%
“…The notion that mobility of individuals matters for diffusion of knowledge has been used in models with international diffusion of knowledge through cross-border flows of people [see Lucas (1993) and Andersen and Dalgaard (2011)]. The assumption is in line with the finding in Machin et al (2012) that labor mobility is positively related to individuals' level of education.…”
Section: Notesmentioning
confidence: 96%