International trade, R & D spillovers and productivity: Evidence from Indian manufacturing industry
AbstractThis paper examines the effect of trade facilitated R & D spillovers on the productivity of manufacturing firms in India. Though developing countries are considered as the major beneficiaries of trade facilitated R&D spillovers, detailed empirical investigations in their context are lacking. The paper distinguishes R&D spillovers into two types and examines their effect on productivity. It also considers the intersectoral variation in productivity effect and the importance of firms' investment in R&D, imported technology and plant and machinery in enhancing the effect on productivity. The paper uses firm level panel data and an improved estimation method. It shows that R&D spillovers have a significant effect on productivity and there exists intersectoral variation with greater contribution to productivity in technology intensive industries. The paper also shows that firms' investment in R&D and plant and machinery are enhancing the productivity effect of R&D spillovers.
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Bibliographic InfoPaper provided by Centre for Development Studies, Trivendrum, India in its series Centre for Development Studies, Trivendrum Working Papers with number 385.
Length: 55 pages
Date of creation: Jun 2007
Date of revision:
R&D Spillover; trade; manufacturing industry; productivity;
Find related papers by JEL classification:
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- L6 - Industrial Organization - - Industry Studies: Manufacturing
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
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