%0 Journal Article %J Journal of International Economics %D 2014 %T Neighbors and the Evolution of the Comparative Advantage of Nations: Evidence of International Knowledge Diffusion? %A Bahar, Dany %A Hausmann, Ricardo %A Hidalgo, César A. %X The literature on knowledge diffusion shows that knowledge decays strongly with distance. In this paper we document that the probability 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. For existing products, growth of exports in a country is 1.5 percent higher per annum if it has a neighbor with comparative advantage in these products. While these results could be driven by a common third factor that escapes our controls, they align with our expectations of the localized character of knowledge diffusion. %B Journal of International Economics %V 92 %P 111-123 %G eng %U http://www.sciencedirect.com/science/article/pii/S0022199613001098 %N 1