On 'indirect' Trade-related R and D Spillovers
Centre for Economic Policy Research, 2001 - Technology transfer - 23 pages
Trade does matter for the international transmission of knowledge. And the indirect trade-related transmission of knowledge is at least as important as its direct transmission.
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2.7 times larger adjusted-R2 aggregation problem average Belgium capture CH and Keller Coe and Hoffmaister coefficient of variation common trends concept of indirect country's specific trade Davidson-MacKinnon test definition of foreign developing countries direct and indirect domestic R&D domestically produced R&D effects elements empirical specification endogeneity equations foreign knowledge foreign R&D flows foreign R&D spillovers foreign stock foreign trade-related R&D Hoffmaister 1999 imports to GDP indirect foreign R&D influential literature argues international transmission inversed matrix knowledge spillovers level of R&D March 2001 March matrix Netherlands obtain R&D spillovers once indirect P-values R&D available R&D in country R&D produced regressions regressors rest-of-the-world sample simple sum specific trade pattern statistically significant stock of foreign stock of R&D sum of foreign Tables 3a TFP Estimation Results total factor productivity total foreign R&D total imports total R&D trade-related foreign R&D trade-related R&D spillovers trading partners transmission mechanism transmission of R&D World Bank