Weak and strong cross-sectional dependence: a panel data analysis of international technology diffusion

Cem Ertur and Antonio Musolesi ()

Working Papers from Grenoble Applied Economics Laboratory (GAEL)

Abstract: This paper provides an econometric examination of geographic R&D spillovers among countries by focusing on the issue of cross-sectional dependence. By applying several unit root tests, we first show that when the number of lags of the autoregressive component of augmented Dickey Fuller test-type specifications or the number of common factors is estimated in a model selection framework, the variables (total factor productivity and R&D capital stocks) appear to be stationary. Then, we estimate the model using two complementary approaches, focusing on spatial autoregressive errors and unobserved common correlated factors. These approaches account for different types of cross-sectional dependence and are related to the concepts of weak and strong cross-sectional dependence recently developed in the literature.

Keywords: PANEL DATA; CROSS-SECTIONAL CORRELATION; SPTIAL MODELs; FACTOR MODELS; UNIT ROOT; INTERNATIONAL TECHNOLOGY DIFFUSION; GEOGRAPHY (search for similar items in EconPapers)
JEL-codes: C23 C5 F0 O3 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-geo, nep-ino and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Weak and Strong Cross‐Sectional Dependence: A Panel Data Analysis of International Technology Diffusion (2017)
Working Paper: Weak and Strong Cross-Sectional Dependence: A Panel Data Analysis of International Technology Diffusion (2017)
Working Paper: Weak and Strong Cross-Sectional Dependence: a Panel Data Analysis of International Technology Diffusion (2016)
Working Paper: Weak and Strong cross-sectional dependence: a panel data analysis of international technology diffusion (2015)
Working Paper: Weak and Strong cross-sectional dependence: a panel data analysis of international technology diffusion (2015)
Working Paper: Weak and Strong cross-sectional dependence: a panel data analysis of international technology diffusion (2015)
Working Paper: Weak and Strong cross-sectional dependence: a panel data analysis of international technology diffusion (2013)
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