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Trade and International R&D Spillovers among OECD Countries
Author(s) -
Funk Mark
Publication year - 2001
Publication title -
southern economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.762
H-Index - 58
eISSN - 2325-8012
pISSN - 0038-4038
DOI - 10.1002/j.2325-8012.2001.tb00366.x
Subject(s) - cointegration , spillover effect , economics , monte carlo method , econometrics , macroeconomics , mathematics , statistics
This paper examines the relationship between trade patterns and international research‐and‐development (R&D) spillovers using Kao and Chiang's (1998) and Kao's (1999) recently developed panel cointegration techniques. Monte Carlo‐type tests demonstrate that the choice of weights used in constructing foreign R&D stocks is informative of the spillover transmission when panel cointegration techniques are employed. However, the evidence does not support a relationship between import patterns and R&D spillovers. The relationship between export patterns and R&D spillovers is then considered. Consistent with recent theoretical models (Ben‐David and Loewy 1998), the evidence suggests that exporters receive substantial R&D spillovers from their customers.