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Are there International RandD Spillovers Among Randomly Matched Trade Partners? A Response to Keller

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  • David T. Coe
  • Alexander W. Hoffmaister

Abstract

Keller (1998) reexamines Coe and Helpman’s (1995) analysis of international R&D spillovers focusing on the weights used to define the foreign R&D capital stock. Keller creates “random” weights and shows that they give rise to positive estimates of international R&D spillovers, casting doubts on the robustness of Coe and Helpman’s findings. We show that Keller’s “random” weights are essentially simple averages with a random error. We derive alternative random weights and present regressions showing that when they are used to define the foreign R&D capital stock, the estimated international R&D spillover estimates are nonexistent, as would be expected.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 99/18.

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Length: 21
Date of creation: 01 Feb 1999
Date of revision:
Handle: RePEc:imf:imfwpa:99/18

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