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International R&D Spillovers, Trade and Productivity in Major OECD Countries

  • M. Ishaq Nadiri
  • Seongjun Kim
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    In this paper we: (1) estimate the effects of international R&D spillovers on total factor productivity growth of the seven largest industrialized countries (G-7); (2) analyze the effect of spillovers on the structure of production, i.e., the effects on factor demand such as labor and investment and output supply; (3) examine the effect of technological transfers on the pattern of trade, i.e., on imports and exports and; (4) calculate the private rates of return on physical capital and R&D investment as well as the social rates of return of foreign R&D spillovers. To achieve the objectives of this study, we have developed a framework that integrates several strands of the available approaches in the literature: the GNP function approach suggested by Burgess (1974) and Kohli (1978), the spillover models proposed by Bernstein and Nadiri (1988), Bernstein and Mohnen (1994), Coe and Helpman (1995) and Park (1995), and the familiar interrelated factor demand and cost models.

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    Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5801.

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    Date of creation: Oct 1996
    Date of revision:
    Publication status: Published as "Sources of Growth of Output and Convergence of Productivityin Major OECD Countries", IJPRODE, Vol. 52, nos. 1-2 (October 1997): 133-1 46.
    Handle: RePEc:nbr:nberwo:5801
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    1. Bernstein, Jeffrey I. & Mohnen, Pierre, 1998. "International R&D spillovers between U.S. and Japanese R&D intensive sectors," Journal of International Economics, Elsevier, vol. 44(2), pages 315-338, April.
    2. Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander W, 1997. "North-South R&D Spillovers," Economic Journal, Royal Economic Society, vol. 107(440), pages 134-49, January.
    3. Wolfgang Keller, 1997. "Trade and the Transmission of Technology," Development and Comp Systems 9707001, EconWPA.
    4. Zvi Griliches, 1991. "The Search for R&D Spillovers," NBER Working Papers 3768, National Bureau of Economic Research, Inc.
    5. Jeffrey I. Bernstein & Xiaoyi Yan, 1997. "International R&D Spillovers between Canadian and Japanese Industries," Canadian Journal of Economics, Canadian Economics Association, vol. 30(2), pages 276-94, May.
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