The Effect of Permanent and Transitory Shocks of Productivity on the Degree of Absorption of Technology Spillovers

Sorour Chehrazi Madreseh () and Seyed Abdolmajid Jalaee Esfandabadi ()
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Sorour Chehrazi Madreseh: Master of Science, Shahid Bahonar university of Kerman
Seyed Abdolmajid Jalaee Esfandabadi: Professor, Shahid Bahonar university of Kerman

Quarterly Journal of Applied Theories of Economics, 2020, vol. 7, issue 3, 51-70

Abstract: The economic and commercial progress of each country depends on the technical and industrial progress, and technical and industrial progress in various economic sectors is possible due to domestic research and development activities and the spillovers of international research and development and the use of their results in economic plans. R&D activities lead to the production of goods and services that can be traded and more effectively use of existing resources and absorbing advanced foreign technology. accordingly, in this study, The effect of productivity shocks on the degree of efficiency in technology spillovers were examined during the period of 1978-2017. for this purpose, the Blanchard-Quah technique have been used for the analysis of temporary and permanent productivity impacts and the structural vector autoregression (SVAR) have been used to study the effect of these two components on technological spillovers. the results of the model indicate that, while the permanent productivity shocks, the main cause of changes in technology spillovers, transitory productivity shocks, do not plays an important role in explaining the changes technology spillovers.

Keywords: Technology Spillovers; Total Factor Productivity; Transitory and Permanent Shocks; Blanchard-Quah Method; Research and Development (search for similar items in EconPapers)
JEL-codes: C32 D24 F41 O32 Q31 (search for similar items in EconPapers)
Date: 2020
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