In this paper, we examine the three facets of technology: its creation, dispersion and absorption. We investigate whether differences in absorptive capacity help to explain cross-country differences in the level of productivity. We utilize stochastic frontier analysis to investigate two...

Recent literature on international technology diffusion has demonstrated the positive effect in foreign country productivity on the domestic economy. Using a sample of Organization for Economic Co-operation and Development (OECD) manufacturing industries we search for evidence that the effect of...