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On"indirect"trade-related research and development spillovers

Author

Listed:
  • Lumenga-Neso, Olivier
  • Olarreaga, Marcelo
  • Schiff, Maurice

Abstract

Influential literature argues that trade promotes knowledge flows and technology transmission between trading partners. This literature focuses on'direct'research and development (R&D) spillovers which are related to the levels of R&D produced by the trading partners. In this paper the authors argue that'indirect'trade-related R&D spillovers also take place between countries, even if they do not trade with each other. These'indirect'spillovers are associated with available rather than with produced levels of R&D. The empirical results suggest that these'indirect'trade-related spillovers are at least as important as the'direct'ones, and strengthen the view that trade does matter for the international transmission of R&D. The empirical results also suggest that, due to the existence of these'indirect'effects, bilateral trade patterns are relatively less important as determinants of the level of foreign R&D spillovers acquired through trade.

Suggested Citation

  • Lumenga-Neso, Olivier & Olarreaga, Marcelo & Schiff, Maurice, 2001. "On"indirect"trade-related research and development spillovers," Policy Research Working Paper Series 2580, The World Bank.
    • Handle: RePEc:wbk:wbrwps:2580
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    References listed on IDEAS

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    2. World Bank, 2004. "Brazil : Trade Policies to Improve Efficiency, Increase Growth, and Reduce Poverty," World Bank Publications - Reports 14708, The World Bank Group.
    3. Schiff, Maurice & Wang, Yanling, 2010. "North-South Trade-Related Technology Diffusion: Virtuous Growth Cycles in Latin America," IZA Discussion Papers 4943, Institute of Labor Economics (IZA).
    4. Schiff, Maurice & Olarreaga, Marcelo & Wang, Yanling, 2003. "North-South and South-South Trade-Related Technology Diffusion: An Industry Level Analysis," CEPR Discussion Papers 3711, C.E.P.R. Discussion Papers.
    5. Schiff,Maurice & Wang, Yanling, 2003. "Regional integration and technology diffusion : the case of the North America free trade agreement," Policy Research Working Paper Series 3132, The World Bank.
    6. Schiff, Maurice & Wang, Yanling & Olarreaga, Marcelo, 2002. "Trade-related technology diffusion and the dynamics of North-South and South-South integration," Policy Research Working Paper Series 2861, The World Bank.
    7. Mattoo, Aaditya & Fink, Carsten, 2004. "Regional Agreements and Trade in Services: Policy Issues," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 19, pages 742-779.
    8. Jensen, Jesper & Tarr, David G., 2010. "Regional trade policy options for Tanzania : the importance of services commitments," Policy Research Working Paper Series 5481, The World Bank.
    9. Lai, Mingyong & Peng, Shuijun & BAO, Qun, 2006. "Technology spillovers, absorptive capacity and economic growth," China Economic Review, Elsevier, vol. 17(3), pages 300-320.

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