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International R&D Spillovers: An Application of Estimation and Inference in Panel Cointegration
Author(s) -
Kao Chihwa,
Chiang MinHsien,
Chen Bangtian
Publication year - 1999
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/1468-0084.0610s1691
Subject(s) - cointegration , inference , economics , econometrics , estimation , panel data , computer science , artificial intelligence , management
In this paper, we apply the asymptotic theory of panel cointegration developed by Kao and Chiang (1998) to Coe and Helpman's (1995) international R&D spillovers regression. The OLS with bias‐correction, the fully‐modified (FM) and the dynamic OLS (DOLS) estimations produce different predictions about the impact of foreign R&D on total factor productivity (TFP) although all the estimations support the result that domestic R&D is related to TFP.