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North-South Trade, Knowledge Spillovers and Growth

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  • David Greenaway
  • Neil Foster
  • Rod Falvey

Abstract

The endogenous growth literature has stimulated empirical research into links between trade and growth in general and international knowledge spillovers in particular. Results relating to the latter have been mixed and the issue of the appropriate construction of the spillover variable remains contentious. In this paper we develop measures taking account of whether knowledge is a public or private good in the donor and recipient countries, and include these in a dynamic panel model of growth. For a sample of five OECD donor countries and 52 developing recipient countries, we conclude that it matters little whether we treat knowledge as a private or public good in the donor but that spillovers, if they exist, act as a public good in the recipient. We also find that the level of trade is important in facilitating knowledge spillovers from donors to recipients.

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Bibliographic Info

Paper provided by European Economy Group in its series European Economy Group Working Papers with number 15.

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Length: 24 pages
Date of creation: 2002
Date of revision:
Handle: RePEc:eeg:euroeg:15

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References

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Citations

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Cited by:
  1. Greenaway, David & Foster, Neil, 2002. "North-South Trade, Knowledge Spillovers and Growth," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 17, pages 650-670.
  2. Schiff, Maurice & Wang, Yanling, 2004. "On the quantity and quality of knowledge - the impact of openness and foreign research and development on North-North and North-South technology spillovers," Policy Research Working Paper Series 3190, The World Bank.
  3. Sourafel Girma, 2003. "Absorptive capacity and productivity spillovers From FDI: a threshold regression analysis," European Economy Group Working Papers 25, European Economy Group.
  4. Adriana Peluffo, 2011. "Integración regional y difusión de tecnología: el caso uruguayo," Documentos de Trabajo (working papers) 11-10, Instituto de Economia - IECON.
  5. World Bank, 2012. "Kazakhstan : Assessment of Costs and Benefits of the Customs," World Bank Other Operational Studies 12299, The World Bank.
  6. Maurice Schiff & Yanling Wang, 2010. "North-South Technology Spillovers: The Relative Impact of Openness and Foreign R&D," International Economic Journal, Taylor & Francis Journals, vol. 24(2), pages 197-207.
  7. Ansgar Belke & Lars Wang, 2006. "The Degree of Openness to Intra-Regional Trade Towards Value-Added Based Openness Measures," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 226(2), pages 115-138, March.
  8. Jaime Turrion & Carmela Martin, 2003. "Eastern Enlargement of the European Union and Foreign Direct Investment Adjustments," European Economy Group Working Papers 24, European Economy Group.
  9. Eicher, Theo & García-Peñalosa, Cecilia, 2008. "Endogenous strength of intellectual property rights: Implications for economic development and growth," European Economic Review, Elsevier, vol. 52(2), pages 237-258, February.
  10. World Bank, 2012. "Assessment of Costs and Benefits of the Customs Union for Kazakhstan," World Bank Other Operational Studies 2722, The World Bank.
  11. Jorge Crespo & Carmela Martín & Francisco J. Velázquez, 2004. "International technology spillovers from trade: the importance of the technological gap," Investigaciones Economicas, Fundación SEPI, vol. 28(3), pages 515-533, September.
  12. Samuel Nursamsu & Fithra Faisal Hastiadi, 2013. "Analysis of International R&D Spillover from International Trade and Foreign Direct Investment Channel: Evidence from Asian Newly Industrialized Countries," Working Papers in Economics and Business 201310, Faculty of Economics, University of Indonesia, revised Sep 2013.
  13. Erdal Atukeren, 2005. "R&D Races and Spillovers between the EU and the US: Some Causal Evidence," KOF Working papers 05-105, KOF Swiss Economic Institute, ETH Zurich.

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