International R&D Spillovers in Transition Countries: The Impact of Trade and Foreign Direct Investment
AbstractWhile the economic theory predicts that developing countries will gain the most from technology spillovers, there have been only a few analyses looking at this question empirically. The present study focuses on a panel of 27 transition and 20 Western European countries between 1990 and 2006 and uses the latest developments in panel unit root and cointegration testing to disentangle the effects of international spillovers via trade and FDI. My findings show that imports remain the main channel of diffusion for both sets of countries, while FDI, although significant econometrically, has less quantitative impact on domestic productivity. The domestic R&D capital stock plays an active role in Western Europe while in the Eastern part is much less important. Human capital has an overall robust positive influence on TFP. The results confirm that transition countries seem to gain more in terms of productivity from the international diffusion process than their Western counterparts
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Advanced Studies Working Papers with number 446.
Length: 29 pages
Date of creation: Mar 2008
Date of revision:
technology spillovers; trade; investment; panel cointegration;
Find related papers by JEL classification:
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-04-21 (All new papers)
- NEP-EFF-2008-04-21 (Efficiency & Productivity)
- NEP-INO-2008-04-21 (Innovation)
- NEP-TRA-2008-04-21 (Transition Economics)
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