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On"indirect"trade-related research and development spillovers

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Author Info

  • Lumenga-Neso, Olivier
  • Olarreaga, Marcelo
  • Schiff, Maurice

Abstract

Influential literature argues that trade promotes knowledge flows and technology transmission between trading partners. This literature focuses on'direct'research and development (R&D) spillovers which are related to the levels of R&D produced by the trading partners. In this paper the authors argue that'indirect'trade-related R&D spillovers also take place between countries, even if they do not trade with each other. These'indirect'spillovers are associated with available rather than with produced levels of R&D. The empirical results suggest that these'indirect'trade-related spillovers are at least as important as the'direct'ones, and strengthen the view that trade does matter for the international transmission of R&D. The empirical results also suggest that, due to the existence of these'indirect'effects, bilateral trade patterns are relatively less important as determinants of the level of foreign R&D spillovers acquired through trade.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2580.

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Date of creation: 12 Apr 2001
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Handle: RePEc:wbk:wbrwps:2580

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Related research

Keywords: Economic Theory&Research; Scientific Research&Science Parks; Agricultural Knowledge&Information Systems; Environmental Economics&Policies; Health Economics&Finance; Research and Development; Education and Digital Divide; Agricultural Knowledge&Information Systems; Scientific Research&Science Parks; Science Education;

References

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  1. Wolfgang Keller, 1996. "Are International R&D Spillovers Trade-related? Analyzing Spillovers among Randomly Matched Trade Partners," International Trade 9608002, EconWPA.
  2. Russell Davidson & James G. MacKinnon, 1981. "Tests for Model Specification in the Presence of Alternative Hypotheses: Some Further Results," Working Papers 430, Queen's University, Department of Economics.
  3. Davidson, Russell & MacKinnon, James G, 1981. "Several Tests for Model Specification in the Presence of Alternative Hypotheses," Econometrica, Econometric Society, vol. 49(3), pages 781-93, May.
  4. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
  5. Tamim Bayoumi & David T. Coe & Elhanan Helpman, 1996. "R&D Spillovers and Global Growth," NBER Working Papers 5628, National Bureau of Economic Research, Inc.
  6. Kraay, Aart & Soloaga, Isidro & Tybout, James, 2002. "Product quality, productive efficiency, and international technology diffusion : evidence from plant-level panel data," Policy Research Working Paper Series 2759, The World Bank.
  7. Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander W, 1997. "North-South R&D Spillovers," Economic Journal, Royal Economic Society, vol. 107(440), pages 134-49, January.
  8. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
  9. Park, Walter G, 1995. "International R&D Spillovers and OECD Economic Growth," Economic Inquiry, Western Economic Association International, vol. 33(4), pages 571-91, October.
  10. Keller, Wolfgang, 1997. "How trade patterns and technology flows affect productivity growth," Policy Research Working Paper Series 1831, The World Bank.
  11. David T. Coe & Alexander W. Hoffmaister, 1999. "Are there International RandD Spillovers Among Randomly Matched Trade Partners? A Response to Keller," IMF Working Papers 99/18, International Monetary Fund.
  12. David T. Coe & Elhanan Helpman, 1993. "International R&D Spillovers," NBER Working Papers 4444, National Bureau of Economic Research, Inc.
  13. James Tybout, 1999. "Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?," Development and Comp Systems 9906001, EconWPA, revised 10 Jun 1999.
  14. Wolfgang Keller, 2000. "Geographic Localization of International Technology Diffusion," NBER Working Papers 7509, National Bureau of Economic Research, Inc.
  15. Douglas A. Irwin & Marko Tervio, 2000. "Does Trade Raise Income? Evidence from the Twentieth Century," NBER Working Papers 7745, National Bureau of Economic Research, Inc.
  16. Navaretti, Giorgio Barba & Tarr, David G, 2000. "International Knowledge Flows and Economic Performance: A Review of the Evidence," World Bank Economic Review, World Bank Group, vol. 14(1), pages 1-15, January.
  17. Bruno Van Pottelsberghe & Frank Lichtenberg, 1998. "International R&D spillovers comment," ULB Institutional Repository 2013/6233, ULB -- Universite Libre de Bruxelles.
  18. Branstetter, Lee G., 2001. "Are knowledge spillovers international or intranational in scope?: Microeconometric evidence from the U.S. and Japan," Journal of International Economics, Elsevier, vol. 53(1), pages 53-79, February.
  19. Wolfgang Keller, 2001. "The Geography and Channels of Diffusion at the World's Technology Frontier," NBER Working Papers 8150, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Schiff, Maurice & Wang, Yanling, 2003. "Regional integration and technology diffusion : the case of the North America free trade agreement," Policy Research Working Paper Series 3132, The World Bank.
  2. Schiff, Maurice & Wang, Yanling, 2010. "North-South Trade-Related Technology Diffusion: Virtuous Growth Cycles in Latin America," IZA Discussion Papers 4943, Institute for the Study of Labor (IZA).
  3. Olarreaga, Marcelo & Schiff, Maurice & Wang, Yanling, 2003. "North-South and South-South Trade-Related Technology Diffusion: An Industry Level Analysis," CEPR Discussion Papers 3711, C.E.P.R. Discussion Papers.
  4. Lai, Mingyong & Peng, Shuijun & BAO, Qun, 2006. "Technology spillovers, absorptive capacity and economic growth," China Economic Review, Elsevier, vol. 17(3), pages 300-320.
  5. Mattoo, Aaditya & Fink, Carsten, 2002. "Regional agreements and trade services - policy issues," Policy Research Working Paper Series 2852, The World Bank.
  6. Schiff, Maurice & Wang, Yanling & Olarreaga, Marcelo, 2002. "Trade-related technology diffusion and the dynamics of North-South and South-South integration," Policy Research Working Paper Series 2861, The World Bank.
  7. Jensen, Jesper & Tarr, David G., 2010. "Regional trade policy options for Tanzania : the importance of services commitments," Policy Research Working Paper Series 5481, The World Bank.
  8. World Bank, 2004. "Brazil : Trade Policies to Improve Efficiency, Increase Growth, and Reduce Poverty," World Bank Other Operational Studies 14708, The World Bank.

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