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Excerpt

Neighbors and the evolution of the comparative advantage of nations: Evidence of international knowledge diffusion? Ricardo Hausmann, January 2014, Paper. "The literature on knowledge diffusion shows that knowledge decays strongly with distance. In this paper we document that the probability that a product is added to a country's export basket is, on average, 65% larger if a neighboring country is a successful exporter of that same product..." May require purchase or user account.