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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

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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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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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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

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References listed on IDEAS
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.:
  1. James R. Tybout, 2000. "Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 11-44, March. [Downloadable!] (restricted)
  2. 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.
  3. Park, Walter G, 1995. "International R&D Spillovers and OECD Economic Growth," Economic Inquiry, Oxford University Press, vol. 33(4), pages 571-91, October.
  4. Wolfgang Keller, 2000. "Geographic Localization of International Technology Diffusion," NBER Working Papers 7509, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Lichtenberg, Frank R. & Pottelsberghe de la Potterie, Bruno v., 1998. "International R&D spillovers: A comment," European Economic Review, Elsevier, vol. 42(8), pages 1483-1491, September. [Downloadable!] (restricted)
  6. Jeffrey A. Frankel & David Romer, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June. [Downloadable!] (restricted)
  7. 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. [Downloadable!] (restricted)
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  8. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May. [Downloadable!] (restricted)
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  9. M. Ishaq Nadiri, 1993. "Innovations and Technological Spillovers," NBER Working Papers 4423, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. 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. [Downloadable!] (restricted)
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  11. 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. [Downloadable!] (restricted)
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  12. 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. [Downloadable!] (restricted)
  13. Bayoumi, Tamim & Coe, David T. & Helpman, Elhanan, 1999. "R&D spillovers and global growth," Journal of International Economics, Elsevier, vol. 47(2), pages 399-428, April. [Downloadable!] (restricted)
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  14. Navaretti, Giorgio Barba & Tarr, David G, 2000. "International Knowledge Flows and Economic Performance: A Review of the Evidence," World Bank Economic Review, Oxford University Press, vol. 14(1), pages 1-15, January.
  15. Nadiri, M.I., 1993. "Innovations and Technological Spillovers," Working Papers 93-31, C.V. Starr Center for Applied Economics, New York University. [Downloadable!]
  16. David T. Coe & Alexander W. Hoffmaister, 1999. "Are There International R&D Spillovers Among Randomly Matched Trade Partners?- A Response to Keller," IMF Working Papers 99/18, International Monetary Fund.
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Cited by:
(explanations, 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.)

  1. Maurice Schiff & Yanling Wang, 2004. "Regional Integration And North-South Technology Diffusion: The Case of Nafta," Working Papers Central Bank of Chile 283, Central Bank of Chile. [Downloadable!]
  2. Mattoo, Aaditya & Fink, Carsten, 2002. "Regional agreements and trade services - policy issues," Policy Research Working Paper Series 2852, The World Bank. [Downloadable!]
  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. [Downloadable!] (restricted)
  4. 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. [Downloadable!]
  5. 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. [Downloadable!]
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