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Intra- and Inter-Industry Productivity Spillovers in OECD Manufacturing: A Spatial Econometric Perspective

Author

Listed:
  • Harald Badinger
  • Peter Egger

Abstract

We adopt a spatial econometric approach to estimate intra- and inter-industry productivity spillovers in total factor productivity transmitted through input-output relations in a sample of 13 OECD countries and 15 manufacturing industries. Both R&D spillovers as well as remainder, input-output-related linkage effects are accounted for, the latter of which we model by a spatial regressive error process. We find that knowledge spillovers occur both horizontally and vertically, whereas remainder spillovers are primarily of intra-industry type. Notably, these intra-industry remainder spillovers turn out economically more significant than R&D spillovers.

Suggested Citation

  • Harald Badinger & Peter Egger, 2008. "Intra- and Inter-Industry Productivity Spillovers in OECD Manufacturing: A Spatial Econometric Perspective," CESifo Working Paper Series 2181, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_2181
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    File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp2181.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Daria Onori, 2015. "Competition and Growth: Reinterpreting their Relationship," Manchester School, University of Manchester, vol. 83(4), pages 398-422, July.
    2. Michaud, Amanda & Rothert, Jacek, 2014. "Optimal borrowing constraints and growth in a small open economy," Journal of International Economics, Elsevier, vol. 94(2), pages 326-340.
    3. Harald Badinger & Peter Egger, 2008. "GM Estimation of Higher Order Spatial Autoregressive Processes in Panel Data Error Component Models," CESifo Working Paper Series 2301, CESifo Group Munich.
    4. Sebastian Benz & Mario Larch & Markus Zimmer, 2015. "Trade in ideas: outsourcing and knowledge spillovers," International Economics and Economic Policy, Springer, vol. 12(2), pages 221-237, June.
    5. Nicholas Apergis & Claire Economidou & Ioannis Filippidis, 2009. "International technology spillovers, human capital and productivity linkages: evidence from the industrial sector," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 36(4), pages 365-387, November.
    6. Rainald Borck & Hyun‐Ju Koh & Michael Pflüger, 2012. "Inefficient Lock‐In And Subsidy Competition," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(4), pages 1179-1204, November.
    7. Tsutomu Harada, 2016. "Estimating innovation input–output matrix and innovation linkages in the East Asian region and the USA," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-24, December.
    8. World Bank, 2012. "Trade and Investment Policies to Promote Climate Friendly Technologies in APEC Economies," World Bank Other Operational Studies 13038, The World Bank.

    More about this item

    Keywords

    intra-industry spillovers; inter-industry spillovers; productivity; spatial econometrics; research and development;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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