Intra- and Inter-Industry Productivity Spillovers in OECD Manufacturing: A Spatial Econometric Perspective

Harald Badinger and Peter Egger

No 2181, CESifo Working Paper Series from CESifo

Abstract: We adopt a spatial econometric approach to estimate intra- and inter-industry productivity spillovers in total factor productivity transmitted through input-output relations in a sample of 13 OECD countries and 15 manufacturing industries. Both R&D spillovers as well as remainder, input-output-related linkage effects are accounted for, the latter of which we model by a spatial regressive error process. We find that knowledge spillovers occur both horizontally and vertically, whereas remainder spillovers are primarily of intra-industry type. Notably, these intra-industry remainder spillovers turn out economically more significant than R&D spillovers.

Keywords: intra-industry spillovers; inter-industry spillovers; productivity; spatial econometrics; research and development (search for similar items in EconPapers)
JEL-codes: C21 F14 L60 (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (17)

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