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Spatial Patterns of Technology Diffusion: An Empirical Analysis using TFP

Author

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  • Maria Abreu

    () (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

  • Henri L.F. de Groot

    () (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

  • Raymond J.G.M. Florax

    () (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

Abstract

In this paper we employ techniques developed in spatial econometrics to analyse spatial patterns of technology diffusion, to detect clusters and to estimate theoretical models that incorporate space explicitly. These techniques correct for misspecifications resulting from the omission of spatial linkages in standard empirical models of economic growth. Our dataset consists of TFP estimates for 73 countries over the period 1960-2000, and we find that TFP growth rates and levels are positively autocorrelated over space, meaning that high or low values tend to be clustered. We also find that TFP levels are becoming more clustered over time, suggesting the possibility that technology levels are converging locally. Estimation of spatial versions of the Nelson and Phelps (1966) model shows that the impact of being located close to a country with high TFP growth rates is positive and substantial.

Suggested Citation

  • Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2004. "Spatial Patterns of Technology Diffusion: An Empirical Analysis using TFP," Tinbergen Institute Discussion Papers 04-079/3, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:20040079
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    Cited by:

    1. Martinho, Vítor João Pereira Domingues, 2011. "Spatial autocorrelation and Verdoorn law in the Portuguese nuts III," MPRA Paper 32165, University Library of Munich, Germany.
    2. Brian Piper, 2014. "Growing at Your Neighbor’s Expense? A Spatial examination of growth in the Americas," Working Papers 1402, Sam Houston State University, Department of Economics and International Business.
    3. Resmini, Laura & Nicolini, Marcella, 2007. "Productivity Spillovers and Multinational Enterprises: in Search of a Spatial Dimension," Papers DYNREG10, Economic and Social Research Institute (ESRI).
    4. Martinho, Vítor João Pereira Domingues, 2011. "Analysis of spatial effects in vine crop across Portuguese regions," MPRA Paper 33200, University Library of Munich, Germany.
    5. Dennis Sánchez-Navarro, 2012. "Una propuesta metodológica para la definición de mercados geográficos relevantes," ESTUDIOS ECONÓMICOS SIC 010492, SUPERINTENDENCIA DE INDUSTRIA Y COMERCIO.
    6. Martinho, Vítor João Pereira Domingues, 2011. "Spatial effects and convergence theory in the Portuguese situation," MPRA Paper 32185, University Library of Munich, Germany.
    7. Andrea Caragliu & Peter Nijkamp, 2008. "The Impact of Regional Absorptive Capacity on Spatial Knowledge Spillovers," Tinbergen Institute Discussion Papers 08-119/3, Tinbergen Institute.
    8. Brian Piper, 2014. "Factor-Specific Productivity," Working Papers 1401, Sam Houston State University, Department of Economics and International Business.
    9. Martinho, Vítor João Pereira Domingues, 2011. "A spatial model based on the endogenous growth theory for Portugal," MPRA Paper 33711, University Library of Munich, Germany.
    10. Martinho, Vítor João Pereira Domingues, 2011. "A spatial model based on the endogenous growth theory for Portugal. Another analysis," MPRA Paper 33712, University Library of Munich, Germany.
    11. Pede, Valerien O. & Florax, Raymond J.G.M. & Lambert, Dayton M., 2014. "Spatial econometric STAR models: Lagrange multiplier tests, Monte Carlo simulations and an empirical application," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 118-128.
    12. Martinho, Vítor João Pereira Domingues, 2011. "Analysis of spatial effects in vine and olive crops across Portuguese regions," MPRA Paper 33201, University Library of Munich, Germany.
    13. Martinho, Vítor João Pereira Domingues, 2011. "A spatial model based on the endogenous growth theory for Portugal. Another approach," MPRA Paper 33713, University Library of Munich, Germany.
    14. Lin, C.-Y. Cynthia, 2010. "A Spatial Econometric Approach to Measuring Pollution Externalities: An Application to Ozone Smog," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 40(1).
    15. Peter Mulder & Raymond J.G.M. Florax & Henri L.F. de Groot, 2011. "A Spatial Perspective on Global Energy Productivity Trends," Chapters,in: Improving Energy Efficiency through Technology, chapter 2 Edward Elgar Publishing.
    16. William Mitchell, 2014. "Spatial econometric modelling," Chapters,in: Handbook of Research Methods and Applications in Spatially Integrated Social Science, chapter 17, pages 345-377 Edward Elgar Publishing.
    17. Vitor Joao Pereira Domingues Martinho, 2011. "Spatial Effects and Verdoorn Law in the Portuguese Context," Papers 1110.5573, arXiv.org.
    18. Vitor Joao Pereira Domingues Martinho, 2011. "Spatial Effects in Convergence of Portuguese Product," Papers 1110.5556, arXiv.org.
    19. Esposti, Roberto, 2008. "Why Should Regional Agricultural Productivity Growth Converge? Evidence from Italian Regions," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43955, European Association of Agricultural Economists.

    More about this item

    Keywords

    human capital; technology diffusion; spatial econometrics;

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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