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International knowledge spillover through trade: A time-varying spatial panel data approach

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  • Ho, Chun-Yu
  • Wang, Wei
  • Yu, Jihai

Abstract

This paper empirically examines international knowledge spillover through bilateral trade. We extend the knowledge production function using a spatial autoregressive term and time-varying weights matrices, and we estimate this model using a sample of 30 countries over the period 1975–2010. We find that there is a positive spillover effect of innovation from one country to its trade partners through bilateral import flows. The spillover effect accounts for approximately 1.3%–3.6% of the total effect of R&D input on innovation output over time.

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  • Ho, Chun-Yu & Wang, Wei & Yu, Jihai, 2018. "International knowledge spillover through trade: A time-varying spatial panel data approach," Economics Letters, Elsevier, vol. 162(C), pages 30-33.
    • Handle: RePEc:eee:ecolet:v:162:y:2018:i:c:p:30-33
    DOI: 10.1016/j.econlet.2017.10.015
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