Based on static analysis, a number of studies argue that forming a RTA is more likely to raise welfare if member countries are natural trading partners,ʺ while other studies claim the opposite. This paper considers the argument from a dynamic viewpoint by examining the impact of trade with...

This paper examines the impact on total factor productivity of North-South and South-South trade-related research and development (R&D) spillovers. It is the first, as far as we know, to do so at the industry level for developing countries. North-South and South-South R&D flows are constructed...

This paper examines the impact of NAFTA on trade-related foreign R&D and total factor productivity (TFP) in Mexico. The measures of foreign R&D are constructed based on industry-specific R&D in the OECD, OECD-Mexico trade patterns, and input-output relations in Mexico. We find that i) trade with...