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THE IMPACT OF FOREIGN R&D ON TOTAL FACTOR PRODUCTIVITY IN THE EAST ASIAN MANUFACTURING INDUSTRY*
Author(s) -
LIAO HAILIN,
LIU XIAOHUI,
HOLMES MARK,
WEYMANJONES TOM
Publication year - 2009
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/j.1467-9957.2008.02096.x
Subject(s) - total factor productivity , economics , productivity , east asia , sample (material) , manufacturing , output elasticity , frontier , stochastic frontier analysis , manufacturing sector , international trade , economic geography , international economics , production (economics) , macroeconomics , business , china , history , chemistry , archaeology , chromatography , marketing , political science , law
Applying a stochastic production frontier we examine the extent to which industrial countries' R&D contributes to East Asian economies' total factor productivity (TFP) growth in manufacturing sectors, via foreign trade as the channel for technological spillovers, based on a sample of nine manufacturing sectors for eight East Asian economies from 1973 to 1998. Our findings provide evidence that foreign R&D spillovers through imports are the main determinant of these economies' TFP growth, with output elasticity standing at an average of 0.09, consistent with many earlier studies. Both technological progress and efficiency gains are found to be key factors for sustainable economic growth in this region.