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International R and D Spillovers and Institutions

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  • Alexander W. Hoffmaister
  • David T. Coe
  • Elhanan Helpman

Abstract

The empirical analysis in "International R&D Spillovers" (Coe and Helpman, 1995) is first revisited by applying modern panel cointegration estimation techniques to an expanded data set that we have constructed for the purpose of this study. The new estimates confirm the key results reported in Coe and Helpman about the impact of domestic and foreign R&D capital stocks on TFP. In addition, we show that domestic and foreign R&D capital stocks have measurable impacts on TFP even after controlling for the impact of human capital. Furthermore, we extend the analysis to include institutional variables, such as legal origin and patent protection, in order to allow for parameter heterogeneity based on a country''s institutional characteristics. The results suggest that institutional differences are important determinants of total factor productivity and that they impact the degree of R&D spillovers.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 08/104.

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Length: 35
Date of creation: 01 Apr 2008
Date of revision:
Handle: RePEc:imf:imfwpa:08/104

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Keywords: Productivity; Foreign investment; Capital; Economic models; r & d; foreign r & d; cointegration; r & d spillovers; domestic r & d; patent protection; statistics; equations; standard error; time series; dummy variables; econometrics; equation; mean group; r & d expenditure; statistic; standard errors; missing data; standard deviation; finite sample; significance levels; r & d activities; logarithms; missing observations; pooled time series; dummy variable; goodness of fit; significance level; samples; explanatory power; impact of r & d; independent variables; random error; correlation; measurement error; sample sizes; number of parameters; autocorrelation; monte carlo simulations; statistical inference; total r & d; ratios of r & d; number of variables; forecasting; logarithm;

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References

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