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Industry-Specific Knowledge Spurs Productivity: An Application of Panel Cointegration

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  • Petra Zloczysti

Abstract

Using data for 14 OECD countries and 13 sectors for the period 1985-2004, this paper analyzes the significance of the linkage between channels of international knowledge spillovers and total factor productivity. We distinguish between domestic and international intra- and inter-sectoral spillover sources. Patent applications are exploited to estimate the contribution of technology transfer to industrial productivity. To account for technological distance, we weight foreign knowledge by bilateral technological proximity. By adopting estimation methods reflecting recent developments in the treatment of non-stationary panel data econometrics, we find that industry-specific knowledge both nationally and internationally mainly drives productivity in the respective sector.

Suggested Citation

  • Petra Zloczysti, 2011. "Industry-Specific Knowledge Spurs Productivity: An Application of Panel Cointegration," Discussion Papers of DIW Berlin 1150, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp1150
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    Keywords

    Knowledge Spillover; Total Factor Productivity; Manufacturing; Panel Cointegration;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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