International trade, R & D spillovers and productivity: Evidence from Indian manufacturing industry

M. Parameswaran ()
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M. Parameswaran: Centre for Development Studies

Centre for Development Studies, Trivendrum Working Papers from Centre for Development Studies, Trivendrum, India

Abstract: This paper examines the effect of trade facilitated R & D spillovers on the productivity of manufacturing firms in India. Though developing countries are considered as the major beneficiaries of trade facilitated R&D spillovers, detailed empirical investigations in their context are lacking. The paper distinguishes R&D spillovers into two types and examines their effect on productivity. It also considers the intersectoral variation in productivity effect and the importance of firms' investment in R&D, imported technology and plant and machinery in enhancing the effect on productivity. The paper uses firm level panel data and an improved estimation method. It shows that R&D spillovers have a significant effect on productivity and there exists intersectoral variation with greater contribution to productivity in technology intensive industries. The paper also shows that firms' investment in R&D and plant and machinery are enhancing the productivity effect of R&D spillovers.

Keywords: R&D Spillover; trade; manufacturing industry; productivity (search for similar items in EconPapers)
JEL-codes: F43 L6 O33 (search for similar items in EconPapers)
Pages: 55 pages
Date: 2007-06
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Citations: View citations in EconPapers (2)

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