IDEAS home Printed from https://ideas.repec.org/p/eeg/euroeg/15.html
   My bibliography  Save this paper

North-South Trade, Knowledge Spillovers and Growth

Author

Listed:
  • David Greenaway
  • Neil Foster
  • Rod Falvey

Abstract

The endogenous growth literature has stimulated empirical research into links between trade and growth in general and international knowledge spillovers in particular. Results relating to the latter have been mixed and the issue of the appropriate construction of the spillover variable remains contentious. In this paper we develop measures taking account of whether knowledge is a public or private good in the donor and recipient countries, and include these in a dynamic panel model of growth. For a sample of five OECD donor countries and 52 developing recipient countries, we conclude that it matters little whether we treat knowledge as a private or public good in the donor but that spillovers, if they exist, act as a public good in the recipient. We also find that the level of trade is important in facilitating knowledge spillovers from donors to recipients.

Suggested Citation

  • David Greenaway & Neil Foster & Rod Falvey, 2002. "North-South Trade, Knowledge Spillovers and Growth," European Economy Group Working Papers 15, European Economy Group.
  • Handle: RePEc:eeg:euroeg:15
    as

    Download full text from publisher

    File URL: http://www.ucm.es/info/econeuro/documentos/documentos/dt152002.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Keller, Wolfgang, 2002. "Trade and the Transmission of Technology," Journal of Economic Growth, Springer, vol. 7(1), pages 5-24, March.
    2. Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander W, 1997. "North-South R&D Spillovers," Economic Journal, Royal Economic Society, vol. 107(440), pages 134-149, January.
    3. Keller, Wolfgang, 1998. "Are international R&D spillovers trade-related?: Analyzing spillovers among randomly matched trade partners," European Economic Review, Elsevier, vol. 42(8), pages 1469-1481, September.
    4. Kao, Chihwa & Chiang, Min-Hsien & Chen, Bangtian, 1999. " International R&D Spillovers: An Application of Estimation and Inference in Panel Cointegration," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 691-709, Special I.
    5. Jorge Crespo & Carmela Martin & Francisco Javier Velázquez, 2002. "International technology diffusion through imports and its impact on economic growth," European Economy Group Working Papers 12, European Economy Group.
    6. Holger G–rg & Eric Strobl, 2003. "Multinational Companies, Technology Spillovers and Plant Survival," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(4), pages 581-595, December.
    7. Holger Gorg & Eric Strobl., 2001. "Multinational Companies, Technology Spillovers and Plant Survival: Evidence for Irish Manufacturing," European Economy Group Working Papers 8, European Economy Group.
    8. David Greenaway & Steve Leybourne & David Sapsford, "undated". "Trade Liberalisation and Growth," Working Papers ec1/96, Department of Economics, University of Lancaster.
    9. Ismael Sanz & Francisco Javier Velázquez, 2002. "Determinants of the Composition of Government Expenditure by Functions," European Economy Group Working Papers 13, European Economy Group.
    10. Moreno, Ramon & Trehan, Bharat, 1997. "Location and the Growth of Nations," Journal of Economic Growth, Springer, vol. 2(4), pages 399-418, December.
    11. Bevan, David & Collier, Paul & Gunning, Jan Willem, 1993. "Trade shocks in developing countries: Consequences and policy responses," European Economic Review, Elsevier, vol. 37(2-3), pages 557-565, April.
    12. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May.
    13. Greenaway, David & Foster, Neil, 2002. "North-South Trade, Knowledge Spillovers and Growth," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 17, pages 650-670.
    14. Martin, Carmela & Turrion, Jaime, 2003. "The Trade Impact of the Integration of the Central and Eastern European Countries on the European Union," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 18, pages 288-306.
    15. Ismael Sanz & Francisco J. Velazquez, 2001. "The evolution and convergence of the government expenditure composition in the OECD countries: an analysis of the functional distribution," European Economy Group Working Papers 9, European Economy Group.
    16. 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.
    17. Bjørn Volkerink & Jan-Egbert Sturm & Jakob de Haan, 2002. "Tax Ratios in Macroeconomics: Do Taxes Really Matter?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 29(3), pages 209-224, September.
    18. Elhanan Helpman & David T. Coe, 1993. "International RandD Spillovers," IMF Working Papers 93/84, International Monetary Fund.
    19. Richard Kneller & Norman Gemmell, 2002. "Fiscal Policy, Growth and Convergence in Europe," European Economy Group Working Papers 14, European Economy Group.
    20. Robert E. Evenson & Lakhwinder Singh, 1997. "Economic Growth, International Technological Spillovers and Public Policy: Theory and Empirical Evidence from Asia," Working Papers 777, Economic Growth Center, Yale University.
    21. Vincenzo Andrietti., 2001. "Occupational Pensions and Job Mobility in the European Union," European Economy Group Working Papers 10, European Economy Group.
    22. Sala-i-Martin, Xavier, 1997. "I Just Ran Two Million Regressions," American Economic Review, American Economic Association, vol. 87(2), pages 178-183, May.
    23. Carmela Martin & Francisco J. Velazquez., 2001. "An Assessment of Real Convergence of Less Developed EU Members: Lessons for the CEEC Candidates," European Economy Group Working Papers 5, European Economy Group.
    24. José Blanes & Carmela Martín, 2000. "The nature and causes of intra-industry trade: Back to the comparative advantage explanation? The case of Spain," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 136(3), pages 423-441, September.
    25. Carmela Martin & Ismael Sanz, 2000. "European technology policy and Spanish industrial firms," European Economy Group Working Papers 3, European Economy Group.
    26. Carmela Martin & Francisco J. Velazquez & Jorge Crespo., 2001. "The Role of International Technological Spillovers in the Economic Growth of the OECD Countries ," European Economy Group Working Papers 6, European Economy Group.
    27. F. Funk, Mark, 2001. "International R&D Spillovers and Convergence Among OECD Countries," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 16, pages 48-65.
    28. Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(02), pages 385-406, June.
    29. Levine, Ross & Renelt, David, 1992. "A Sensitivity Analysis of Cross-Country Growth Regressions," American Economic Review, American Economic Association, vol. 82(4), pages 942-963, September.
    30. Greenaway, David & Morgan, Wyn & Wright, Peter, 2002. "Trade liberalisation and growth in developing countries," Journal of Development Economics, Elsevier, vol. 67(1), pages 229-244, February.
    31. David T. Coe & Willy 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.
    32. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
    33. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    34. Francisco Rodriguez & Dani Rodrik, 1999. "Trade Policy and Economic Growth: A Skeptic's Guide to Cross-National Evidence," NBER Working Papers 7081, National Bureau of Economic Research, Inc.
    35. repec:umd:umdeco:rodriguez9901 is not listed on IDEAS
    36. Eaton, Jonathan & Kortum, Samuel, 1999. "International Technology Diffusion: Theory and Measurement," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(3), pages 537-570, August.
    37. Greenaway, David & Morgan, Wyn & Wright, Peter W, 1998. "Trade Reform, Adjustment and Growth: What Does the Evidence Tell Us?," Economic Journal, Royal Economic Society, vol. 108(450), pages 1547-1561, September.
    38. Xu, Bin, 2000. "Trade, FDI, and International Technology Diffusion," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 15, pages 585-601.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rahul Anand & Kalpana Kochhar & Saurabh Mishra, 2015. "Make in India; Which Exports Can Drive the Next Wave of Growth?," IMF Working Papers 15/119, International Monetary Fund.
    2. Adriana Peluffo, 2011. "Integración regional y difusión de tecnología: el caso uruguayo," Documentos de Trabajo (working papers) 11-10, Instituto de Economía - IECON.
    3. Samuel Nursamsu & Fithra Faisal Hastiadi, 2013. "Analysis of International R&D Spillover from International Trade and Foreign Direct Investment Channel: Evidence from Asian Newly Industrialized Countries," Working Papers in Economics and Business 201310, Faculty of Economics and Business, University of Indonesia, revised Sep 2013.
    4. Belke Ansgar & Wang Lars, 2006. "The Degree of Openness to Intra-Regional Trade - Towards Value-Added Based Openness Measures," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 226(2), pages 115-138, April.
    5. Jorge Crespo & Carmela Martín & Francisco J. Velázquez, 2004. "International technology spillovers from trade: the importance of the technological gap," Investigaciones Economicas, Fundación SEPI, vol. 28(3), pages 515-533, September.
    6. Marattin, Luigi & Marzo, Massimiliano & Zagaglia, Paolo, 2013. "Distortionary tax instruments and implementable monetary policy," International Review of Economics & Finance, Elsevier, vol. 25(C), pages 219-243.
    7. Crespo Cuaresma & Hlouskova & Obersteiner, 2008. "Natural Disasters As Creative Destruction? Evidence From Developing Countries," Economic Inquiry, Western Economic Association International, vol. 46(2), pages 214-226, April.
    8. Jaime Turrion & Carmela Martin, 2003. "Eastern Enlargement of the European Union and Foreign Direct Investment Adjustments," European Economy Group Working Papers 24, European Economy Group.
    9. Schiff, Maurice & Wang, Yanling, 2004. "On the quantity and quality of knowledge - the impact of openness and foreign research and development on North-North and North-South technology spillovers," Policy Research Working Paper Series 3190, The World Bank.
    10. López-Pueyo, Carmen & Barcenilla-Visús, Sara & Sanaú, Jaime, 2008. "International R&D spillovers and manufacturing productivity: A panel data analysis," Structural Change and Economic Dynamics, Elsevier, vol. 19(2), pages 152-172, June.
    11. Eicher, Theo & García-Peñalosa, Cecilia, 2008. "Endogenous strength of intellectual property rights: Implications for economic development and growth," European Economic Review, Elsevier, vol. 52(2), pages 237-258, February.
    12. Maurice Schiff & Yanling Wang, 2010. "North-South Technology Spillovers: The Relative Impact of Openness and Foreign R&D," International Economic Journal, Taylor & Francis Journals, vol. 24(2), pages 197-207.
    13. Ingianni, Andrea, 2012. "Intra-European Union trade openness and new members’ output convergence: A time-series analysis," Economics Discussion Papers 2012-5, School of Economics, Kingston University London.
    14. Erdal Atukeren, 2005. "R&D Races and Spillovers between the EU and the US: Some Causal Evidence," KOF Working papers 05-105, KOF Swiss Economic Institute, ETH Zurich.
    15. Falvey, Rod & Foster, Neil & Greenaway, David, 2004. "Imports, exports, knowledge spillovers and growth," Economics Letters, Elsevier, vol. 85(2), pages 209-213, November.
    16. Manca, Fabio, 2010. "Technology catch-up and the role of institutions," Journal of Macroeconomics, Elsevier, vol. 32(4), pages 1041-1053, December.
    17. International Monetary Fund, 2015. "Republic of Estonia; Selected Issues," IMF Staff Country Reports 15/337, International Monetary Fund.
    18. World Bank, 2016. "Assessing the Impact of WTO Accession on Belarus," World Bank Other Operational Studies 24698, The World Bank.
    19. Schiff, Maurice & Wang, Yanling, 2009. "North-South Trade-related Technology Diffusion, Brain Drain and Productivity Growth: Are Small States Different?," Policy Research Working Paper Series 4828, The World Bank.
    20. Sourafel Girma, 2005. "Absorptive Capacity and Productivity Spillovers from FDI: A Threshold Regression Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(3), pages 281-306, June.
    21. World Bank, 2012. "Kazakhstan : Assessment of Costs and Benefits of the Customs," World Bank Other Operational Studies 12299, The World Bank.
    22. World Bank, 2012. "Assessment of Costs and Benefits of the Customs Union for Kazakhstan," World Bank Other Operational Studies 2722, The World Bank.
    23. Greenaway, David & Foster, Neil, 2002. "North-South Trade, Knowledge Spillovers and Growth," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 17, pages 650-670.

    More about this item

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • 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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eeg:euroeg:15. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ismael Sanz). General contact details of provider: http://edirc.repec.org/data/geucmes.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.