Trade network and international R&D spillovers

Andrea Fracasso and Giuseppe Vittucci Marzetti

No 1103, Openloc Working Papers from Public policies and local development

Abstract: Following Coe and Helpman (International R&D Spillovers, EER, 39, 859-887, 1995), the literature on the trade-related channels of international knowledge flows has flourished. Departing from Coe and Helpman's tenets on the proportionality of trade and productivity spillovers and thus relaxing the implicit assumption that the knowledge transferred internationally is physically embodied in the exchanged products, we test whether relatively strong bilateral trade relationships are significantly associated with important international R&D spillovers. Notably, we focus on refined measures of bilateral trade that account for country size, time-invariant pair-specific factors and time-varying country-specific factors. By distinguishing closer and more distant trade partners without weighting their R&D stocks for the bilateral trade flows, we show that trade is indeed an international transmission channel of knowledge even when distance and other pair specific time-invariant factors are taken into account.

Keywords: International R&D spillovers; Total Factor Productivity; International trade network (search for similar items in EconPapers)
JEL-codes: C23 F01 O30 O47 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-cse, nep-ino, nep-int, nep-net and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:trn:utwpol:1103

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