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Spatial Patterns of Technology Diffusion: An Empirical Analysis using TFP

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Author Info
Maria Abreu () (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)
Henri L.F. de Groot () (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)
Raymond J.G.M. Florax () (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

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Abstract

In this paper we employ techniques developed in spatial econometrics to analyse spatial patterns of technology diffusion, to detect clusters and to estimate theoretical models that incorporate space explicitly. These techniques correct for misspecifications resulting from the omission of spatial linkages in standard empirical models of economic growth. Our dataset consists of TFP estimates for 73 countries over the period 1960-2000, and we find that TFP growth rates and levels are positively autocorrelated over space, meaning that high or low values tend to be clustered. We also find that TFP levels are becoming more clustered over time, suggesting the possibility that technology levels are converging locally. Estimation of spatial versions of the Nelson and Phelps (1966) model shows that the impact of being located close to a country with high TFP growth rates is positive and substantial.

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Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 04-079/3.

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Date of creation: 12 Jul 2004
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Handle: RePEc:dgr:uvatin:20040079

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Related research
Keywords: human capital; technology diffusion; spatial econometrics;

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Find related papers by JEL classification:
I2 - Health, Education, and Welfare - - Education
O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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References listed on IDEAS
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Cited by:
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  1. Esposti, R., 2008. "Why Should Regional Agricultural Productivity Growth Converge? Evidence from Italian Regions," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43955, European Association of Agricultural Economists. [Downloadable!]
    Other versions:
  2. Andrea Caragliu & Peter Nijkamp, 2008. "The Impact of Regional Absorptive Capacity on Spatial Knowledge Spillovers," Tinbergen Institute Discussion Papers 08-119/3, Tinbergen Institute. [Downloadable!]
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