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International knowledge spillover through trade: A time-varying spatial panel data approach

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  • Ho, Chun-Yu
  • Wang, Wei
  • Yu, Jihai

Abstract

This paper empirically examines international knowledge spillover through bilateral trade. We extend the knowledge production function using a spatial autoregressive term and time-varying weights matrices, and we estimate this model using a sample of 30 countries over the period 1975–2010. We find that there is a positive spillover effect of innovation from one country to its trade partners through bilateral import flows. The spillover effect accounts for approximately 1.3%–3.6% of the total effect of R&D input on innovation output over time.

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  • Ho, Chun-Yu & Wang, Wei & Yu, Jihai, 2018. "International knowledge spillover through trade: A time-varying spatial panel data approach," Economics Letters, Elsevier, vol. 162(C), pages 30-33.
    • Handle: RePEc:eee:ecolet:v:162:y:2018:i:c:p:30-33
    DOI: 10.1016/j.econlet.2017.10.015
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    2. Qingbo Huang & Xinxin Xia & Xiaohan Zhang & Yan Li, 2024. "Can the extension of the global value chain production length promote carbon emissions reduction in China's equipment manufacturing industry?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(2), pages 3165-3192, February.
    3. Valeria Costantini & Valerio Leone Sciabolazza & Elena Paglialunga, 2023. "Network-driven positive externalities in clean energy technology production: the case of energy efficiency in the EU residential sector," The Journal of Technology Transfer, Springer, vol. 48(2), pages 716-748, April.
    4. Yin, Zhonghua & Wang, Fang & Gan, Jianbang, 2020. "Spatial spillover effects of global forest product trade," Forest Policy and Economics, Elsevier, vol. 113(C).
    5. Liu, Weilin & Cheng, Qian & Sickles, Robin C., 2022. "Productivity Growth and Spillovers across European Industries: A Global Value Chain Perspective Based on EURO KLEMS," Working Papers 22-001, Rice University, Department of Economics.
    6. Lee, Chien-Chiang & Wen, Huwei, 2025. "Global value chain embedding and enterprise energy efficiency: A worldwide firm-level analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 207(C).
    7. Alvina Sabah Idrees & Saima Sarwar, 2023. "Spatial convergence clubs and innovation persistence: a country-group comparison of international spatial spillover of innovation capabilities," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(5), pages 4121-4152, October.
    8. Abdoulaye Seck & Founty Alassane Fall & Khadidiatou Aidara, 2020. "Regional Integration and Growth Spillovers: Is Africa an Economic Space?," Journal of African Trade, Springer, vol. 7(1), pages 37-44, December.
    9. Shi, Qiaoling & Shan, Yuli & Zhong, Chao & Cao, Ye & Xue, Rui, 2022. "How would GVCs participation affect carbon intensity in the “Belt and Road Initiative” countries?," Energy Economics, Elsevier, vol. 111(C).
    10. Mahyudin Ahmad & Siong Hook Law, 2024. "Financial development, institutions, and economic growth nexus: A spatial econometrics analysis using geographical and institutional proximities," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 2699-2721, July.
    11. Emediegwu, Lotanna E. & Wossink, Ada & Hall, Alastair, 2022. "The impacts of climate change on agriculture in sub-Saharan Africa: A spatial panel data approach," World Development, Elsevier, vol. 158(C).
    12. Haoqiang Li & Jihong Chen & Zheng Wan & Huaxin Zhang & Maoxin Wang & Yun Bai, 2020. "Spatial evaluation of knowledge spillover benefits in China’s free trade zone provinces and cities," Growth and Change, Wiley Blackwell, vol. 51(3), pages 1158-1181, September.
    13. Mahyudin Ahmad & Stephen G. Hall, 2023. "The growth effects of economic and political institutions: new evidence from spatial econometrics analysis using historical-based institutional matrix," Economic Change and Restructuring, Springer, vol. 56(2), pages 749-780, April.
    14. Aidara, Khadidiatou & Fall, Founty A. & Seck, Abdoulaye, 2019. "Is Africa an Economic Space?," Conference papers 333021, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Wang, Kunlun & Zheng, Leven J. & Zhang, Justin Zuopeng & Yao, Hongjiang, 2022. "The impact of promoting new energy vehicles on carbon intensity: Causal evidence from China," Energy Economics, Elsevier, vol. 114(C).
    16. Modan Yan & Haiyun Liu, 2024. "The Impact of Digital Trade Barriers on Technological Innovation Efficiency and Sustainable Development," Sustainability, MDPI, vol. 16(12), pages 1-19, June.
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    18. Yuanyuan Mao & Lingli Hou & Zhengdong Zhang, 2021. "Spatial-Temporal Evolution and Relationship between Urbanization Level and Ecosystem Service from a Dual-Scale Perspective: A Case Study of the Pearl River Delta Urban Agglomeration," Sustainability, MDPI, vol. 13(15), pages 1-20, July.
    19. Yang, Lisha & Ni, Mengying, 2022. "Is financial development beneficial to improve the efficiency of green development? Evidence from the “Belt and Road” countries," Energy Economics, Elsevier, vol. 105(C).

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