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International Trade and Economic Growth: A Possible Methodology for Estimating Cross-Border R&D Spillovers

  • Lawrence R. McNeil
  • Barbara M. Fraumeni

    (Bureau of Economic Analysis)

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    The Bureau of Economic Analysis (BEA) has initiated a National Science Foundation (NSF) funded project to produce an official BEA/NSF R&D Satellite Account (R&DSA). This paper presents a possible trade-based methodology for estimating cross-border R&D spillovers, which reflects an important component of the overall project because spillovers may be formally integrated into the official BEA/NSF R&DSA. Beginning with Coe and Helpman (1995), we evaluate four methodologies used to estimate the impact of international R&D spillovers on economic growth and select Xu and Wang (1999) as the model most appropriate for calculating net outward spillovers. Based on our calculations, we conclude that including cross-border R&D spillovers would increase 1990 U.S. Gross Domestic Product by 0.33%.

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    File URL: http://www.bea.gov/papers/pdf/R&DSpillovers.pdf
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    Paper provided by Bureau of Economic Analysis in its series BEA Papers with number 0047.

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    Date of creation: Mar 2005
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    Handle: RePEc:bea:papers:0047
    Contact details of provider: Phone: 202-482-4883
    Web page: http://www.bea.gov/research/index.htmEmail:


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    1. Wolfgang Keller, 1997. "Are International R&D Spillovers Trade-Related? Analyzing Spillovers Among Randomly Matched Trade Partners," NBER Working Papers 6065, National Bureau of Economic Research, Inc.
    2. Edmond, Chris, 2001. "Some Panel Cointegration Models of International R&D Spillovers," Journal of Macroeconomics, Elsevier, vol. 23(2), pages 241-260, April.
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