How trade patterns and technology flows affect productivity growth

Arbeitspapier

This paper presents a model of international trade in differentiated intermediate goods. Because intermediates are invented through costly R&D investments, employing foreign intermediates implies sharing the return to R&D with the inventor country. We first derive how domestic productivity is related to foreign R&D investments. In the subsequent empirical analysis, industry level data for eight OECD countries between 1970-91 is used to estimate that relation. The robustness of interpreting empirical findings is emphasised, to which effect Monte-Carlo techniques are employed, and the part of international R&D spillovers that is related to trade is quantified. We find evidence, first, that domestic and foreign R&D affect productivity differently, in contrast to assuming symmetric effects. Second, the productivity effects resulting from R&D vary substantially by which country conducts the R&D. Third, we find that the composition of a country's import partners does not significantly affect the estimated effect from foreign R&D, indicating a large component in the benefit from foreign R&D which is not related to trade. Lastly, it is estimated that international trade contributes about 20% to the total productivity effect from foreign R&D.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Nota di Lavoro ; No. 72.1997

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Statistical Simulation Methods: General
• Thema: International R&D spillovers ; Intermediate goods trade ; Embodied technical change ; Monte Carlo estimation

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Keller, Wolfgang
• Ereignis: Veröffentlichung
• (wer): Fondazione Eni Enrico Mattei (FEEM)
• (wo): Milano
• (wann): 1997

Weitere Informationen

• Handle: http://hdl.handle.net/10419/154835
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ