Yasser Abdih (International Monetary Fund) Frederick Joutz (International Monetary Fund)
Abstract
The knowledge production function is central to research and development-based growth models. This paper empirically investigates the knowledge production function and intertemporal spillover effects using cointegration techniques. Timeseries evidence suggests there are two long-run cointegrating relationships. The first captures a long-run knowledge production function; the second captures a long-run positive relationship between total factor productivity (TFP) and the knowledge stock. The results indicate that strong intertemporal knowledge spillovers are present and that the long-run impact of the knowledge stock on TFP is small. This evidence is interpreted in light of existing theoretical and empirical evidence on endogenous growth. Copyright 2006, International Monetary Fund
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Article provided by Palgrave Macmillan Journals in its journal IMF Staff Papers.
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Find related papers by JEL classification: O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity O3 - Economic Development, Technological Change, and Growth - - Technological Change C5 - Mathematical and Quantitative Methods - - Econometric Modeling
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