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International knowledge spillover through trade: A time-varying spatial panel data approach

Chun-Yu Ho (), Wei Wang and Jihai Yu ()

Economics Letters, 2018, vol. 162, issue C, 30-33

Abstract: This paper empirically examines international knowledge spillover through bilateral trade. We extend the knowledge production function using a spatial autoregressive term and time-varying weights matrices, and we estimate this model using a sample of 30 countries over the period 1975–2010. We find that there is a positive spillover effect of innovation from one country to its trade partners through bilateral import flows. The spillover effect accounts for approximately 1.3%–3.6% of the total effect of R&D input on innovation output over time.

Keywords: Innovation; Spillover; Spatial autoregression (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1016/j.econlet.2017.10.015

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