Publication

This paper documents the export of skills, embodied in goods, services or capital from poorer to richer countries. The authors first present a set of stylized facts. Using a measure which combines the sophistication of a country’s exports with the average income level of destination countries, they show that the performance of a number of developing countries, notably China, Mexico and South Africa, matches that of much more advanced countries, such as Japan, Spain and USA. The authors conclude that their results suggest the need for a deeper analysis of whether development benefits might derive not from deifying comparative advantage but from defying it.