Is North South Trade Related Technology Diffusion Regional

There is an influential literature on trade-related technology diffusion. This article contributes to that literature by investigating whether north-south trade-related technology diffusion has a regional dimension. To do so, we build a weighted foreign research and development index at the industry level to account for international and interindustry technology spillovers. Using parallel analysis for nine developing countries, we find: (1) north-south trade-related technology diffusion is strong and significant and (2) north-south technology diffusion tends to have a regional dimension: developing countries in Asia, Latin America, and the Middle East tend to benefit, respectively, more from trade with Japan, North America, and Europe than from trade with other northern regions.