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Spatial Patterns of Technology Diffusion: An Empirical Analysis Using TFP

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  • Maria Abreu

    ()

  • Henride Groot
  • Raymond Florax

    ()

Abstract

We investigate the spatial distribution of TFP growth rates using exploratory spatial data analysis and other spatial econometric techniques. Our sample consists of 73 countries and covers the period 1960-2000. We identify significant positive spatial autocorrelation in TFP growth rates, indicating that high and low values tend to be clustered in space. We also find strong positive spatial autocorrelation in TFP levels, which has increased over the period 1960-2000. This result may be indicative of a tendency towards clustering over time, a conclusion reinforced by our finding of two clusters of high TFP growth rates (in Europe and South East Asia), and two clusters of low TFP growth rates (in the Andean region and Sub-Saharan Africa). We estimate the Nelson and Phelps (1966) model of technology diffusion while allowing for spatial dependence in the error term. Our estimation results suggest that both the growth rate and the level of human capital have an important effect on productivity growth rates. JEL:I2,O4,C21. Keywords: human capital, technology diffusion, spatial econometrics.

Suggested Citation

  • Maria Abreu & Henride Groot & Raymond Florax, 2004. "Spatial Patterns of Technology Diffusion: An Empirical Analysis Using TFP," ERSA conference papers ersa04p425, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa04p425
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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

    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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