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International R&D Spillovers, Human Capital and Productivity in OECD Economies: An Empirical Investigation
Abstract
This paper extends Coe and Helpman's (International R&D spillovers, European Economic Review, 39, 859–887, 1995) study of international R&D spillovers amongst OECD countries by including a general human capital variable which accounts for innovation outside the R&D sector and other aspects of human capital not captured by formal R&D. This results in somewhat smaller coefficient estimates for domestic R&D capital and international R&D spillovers, but they remain highly statistically significant. General human capital is found to affect TFP directly as a factor of production, and as a vehicle for international knowledge transfer associated with productivity catch-up amongst OECD countries. It seems to play a distinct role from R&D in the economic growth processes of these economies.
... A large amount of research has examined this issue since the pioneering work by Coe and Helpman (1995). It has been generally agreed that trade is a special conduit for technological transfer (Engelbrecht, 1997;Keller, 1998Keller, , 1999Keller, , 2002Lee 2006;Zhu and Zeon, 2007;Coe et al., 2009). 1 This paper contributes to the literature on international R&D spillovers in the following ways. ...
... The framework of assessing the benefits of R&D spillovers through trade is first initiated by Coe and Helpman (1995) where they incorporate two different approaches of R&D-based endogenous growth: variety expansion (as per Romer, 1990;Grossman and Helpman, 1991) and quality improvement (as per Grossman and Helpman, 1991;Aghion and Howitt, 1992). It is then extended by Coe et al. (1997) and Engelbrecht (1997) in considering human capital as another important determinant of TFP. In this paper, we employ this extended empirical regression to examine the degree of international R&D spillovers through trade, especially through trade conducted under FTAs. ...
... Early models, e.g. Coe and Helpman (1995), Engelbrecht (1997), often use Ordinary Least Squares (OLS) technique to estimate the long-run relationship between TFP and other interested variables within R&D context. However, as criticized by Kao et al. (1999), this technique suffers from a second-order asymptotic bias that leads to invalid standard errors although its estimator is superconsistent. ...
... In a broader sense, R&D spillovers refer to the forced ''leakage'' as well as the voluntary exchange of useful technological information (Steurs, 1997). At macro levels, Coe and Helpman (1995), Coe et al. (1997, 2009), Engelbrecht (1997, Le (2022) and Luintel et al. (2014) show that knowledge spreads not only within a country's borders, but also internationally. ...
... International knowledge diffusion across countries occurs when the knowledge originating from one country contributes to the innovation process of others (Cincera & van Pottelsberghe de la Potterie, 2001). Knowledge spillovers are generally characterized by the international transfer of technology that may take place via different channels such as trade (Caselli & Coleman, 2001;Coe & Helpman, 1995;Coe et al., 2009;Engelbrecht, 1997;Keller, 1998Keller, , 2000Keller, , 2002Le, 2022), inflows and outflows of foreign direct investment (Driffield et al., 2010;G. Lee, 2006;Singh, 2007;van Pottelsberghe de la Potterie & Lichtenberg, 2001;Veugelers & Cassiman, 2004), migration of scientists and highly skilled workforce (Hakkala & Sembenelli, 2018;Le, 2008aLe, , 2010Le, , 2012Le, , 2022Park, 2004;Trippl, 2013) or business visits of entrepreneurs (Hovhannisyan & Keller, 2015;Piva et al., 2018). ...
... Similarly, the coefficient of log (HC) is always positive and statistically significant. This aligns with Coe et al. (1997), Engelbrecht (1997) and Le (2022) among others that confirm the importance of human capital for technological improvement. ...
This paper examines how financial development affects technological progress of 55 developing countries over the 2003 to 2016 period, with particular attention to the interaction between R&D spillovers and financial development. We find that financial development induces total factor productivity improvement in developing countries both directly and indirectly. While there has been a profound literature on the direct effect of financial development on total factor productivity improvement, the evidence of an indirect effect is relatively new. Specifically, the indirect effect takes place through international R&D spillovers from developed countries to developing countries. Between the two components of financial development, the financial institutional aspects exert a more significant effect on total factor productivity than that of their financial market counterparts. As this paper also re-examines the effectiveness of the North-South R&D spillovers, it conveys important implications for policymakers whose objectives are to promote technological development and economic performance.
... However, knowledge spillovers do not necessarily imply productivity growth, unless supported by domestic economic policies. Consequently, the literature suggests that an economy's ability to absorb, adapt, and diffuse new knowledge and foreign technologies depend on the quality of its education system, accumulated human capital, and knowledge stock (Kokko et al. 1996, Engelbrecht 1997, Kathuria 2002, Benhabib and Spiegel 1994, Blomström et al. 2003). An educated labour force and investment in research and development (R&D) speed up the internalisation of knowledge spillovers, thereby boosting economic growth and productivity. ...
... Subsequently, it increases domestic efficiency, productivity, and economic performance (Nelson and Phelps 1966, Lucas 1988, Frantzen 2000, Kwark and Shyn 2006, Teixeira and Fortuna 2010. This is one channel through which absorptive capacity affects productivity; the other works through substantial moderation effects of absorptive capacity on international knowledge spillovers (Coe and Helpman 1995, Engelbrecht 1997, Hejazi and Safarian 1999, Ali et al. 2016. Direct and indirect effects of absorptive capacity have been extensively discussed in policy and innovation literature for productivity growth in industrialised economies. ...
... In particular, the ability of the local economy/firms/regions or sectors to utilise and benefit from external linkages depends on their absorptive capacity (Cohen and Levinthal 1990). Relating absorptive capacity to human capital, several growth economists (Nelson and Phelps 1966, Engelbrecht 1997, Blomström et al. 2003, Joseph 2007, Li 2011) postulate that in a technologically advanced economy, the more educated the innovators, the faster will be the speed of new technology adoption and diffusion. In the same breath, productivity benefits are found to be associated with greater investment in R&D and a moderate technology gap measured by local learning capacity between foreign and local firms (Kokko et al. 1996, Glass andSaggi 1998). ...
The paper explores the role of absorptive capacity in understanding the association between international knowledge spillovers and total factor productivity (TFP) growth in Indian manufacturing. Imports and FDI provide two major channels of knowledge spillovers while private research and development (R&D) and education-weighted human capital are used as proxies for domestic absorptive capacity. Applying pooled linear regression on 2-digit manufacturing sectors based on NIC 2008 (ISIC Rev. 4) for 2000–2016 in India, positive spillover effects of FDI and imports on TFP growth are confirmed. However, when looking at moderation effects, absorptive capacity is found to moderate the relationship between knowledge spillovers and domestic productivity negatively. When the manufacturing sectors are sub-grouped based on their technological intensities, interesting differences emerge. For the low-tech and medium–low-tech sectors, spillovers from FDI negatively affect TFP. In contrast, in the high-tech and medium–high-tech sectors, spillovers from imports as well as FDI have a dampening effect on productivity. With respect to interaction effects, absorptive capacity negatively moderates the relationship between FDI spillovers and TFP growth in the low-tech sectors. In the high-tech sectors, interestingly, human capital positively moderates import spillovers for productivity growth while no such moderation effect is found for R&D. Overall, results indicate that industries witnessing considerable FDI inflows and imports in recent years have not experienced direct productivity gains in the same proportion. This highlights the importance of absorptive capacity for productivity growth and the need for policy intervention at disaggregated sectoral level in India.
... Technological progress is the term widely used in innovation economics and management literature to indicate innovation and productivity improvement. Technological progress can be measured by the number of patents (Baba et al., 2009;Jaffe, 1989;Wirsich et al., 2016), an economic value associated with patents (Kogan et al., 2017), innovative outputs (George et al., 2002;Le and Tang, 2015), labor productivity (Eid, 2012) or TFP Helpman, 1995, 2009;Engelbrecht, 1997;Luintel et al., 2014;Kim and Park, 2017;Tsamadias et al., 2019). 6 Among these measures, TFP is perhaps the most widely used measure for technological progress in a country. ...
... Meanwhile, human capital is a critical source for a nation's technological progress (Schultz, 1961). Empirical evidence for the significant effect of human capital stock on TFP can be found in Coe and Helpman (1997), Engelbrecht (1997), Coe et al. (2009) andLuintel et al. (2014). Academics contribute to the development of a country's human capital through their educating and training responsibility, such as lecturing and supervising students, providing graduates and employees with vocational training (Bekkers and Freitas, 2008;Jones and de Zubielqui, 2017;Meyer-Krahmer and Schmoch, 1998;Rosenberg and Nelson, 1994;Varga, 2000;Zucker et al., 2002). ...
... Our measure of industrial R&D refers to the measure of total R&D capital stocks whose construction procedure is first initiated by Coe and Helpman (1995) and then widely followed by subsequent papers (e.g., Bayoumi et al., 1999;Engelbrecht, 1997) in the R&D-based growth literature. In particular, data on nominal industrial R&D expenditure, after being collected from OECD Statistical Database, is deflated by an R&D price index to generate R&D expenditure. ...
Since frontier academic research is often thought to be driven by recognition and promotion rather than commercial values, its real contribution to a country's technological progress is sometimes doubted. Against this skepticism, this paper argues that frontier academic research resembles a public good and creates important scientific foundations for industrial innovation. When diffused to industry, it significantly contributes to the country's technological improvement. Using panel OLS and dynamic panel OLS estimation methods to analyze a dataset of 18 OECD countries during 2003-2017, this paper finds substantial support to this theory. Obtained results indicate that both frontier academic research and industrial R&D are beneficial to a country's technological progress, but a large proportion of the effect of frontier academic research on a country's technological development is transferred through industrial R&D. In countries with relatively abundant industrial R&D, frontier academic knowledge becomes relatively less attractive in production. These results are robust across different estimation methods, regression specifications, and different proxies of frontier academic research and technological progress. They convey important implications for policymakers in designing national strategies towards promoting a nation's long-term technological development.
... It is important to notice that human capital is created as a result of human effort, so its level is entirely endogenously determined. In his work, Engelbrecht (1997) emphasised the importance of human capital development for the possibility of transferring new knowledge and technology among OECD countries. This process encourages a faster productivity growth in developing countries, helping them to overcome the productivity differences between them and more developed countries. ...
... Therefore, human capital figured as a significant factor of growth in many of the endogenous model. Furthermore, its positive impact on the economic growth is proved by numerous empirical studies (Supriyo (2014), Engelbrecht(1997), Wolff(2000), Miller, Upadhyay (2000)). The positive impact of openness on economic growth is also empirically validated (Miller, Upadhyay (2000)). ...
Over the recent years the internet has become a new environment where politics
is plaid out. It is also a medium that affects politics, and a tool that is being used
by the latter. Yet internet is now more than an information highway, an
effective information tool or virtually unlimited information source. The
concept of cyberpower, however shows that the online environment is the field
of not only ideological war, but also that where cyber terrorists can to carry out
attacks with fatal consequences. Rather than focusing on hard-attacks within
extra-cyberspace, the chapter addresses soft tools, particularly public
diplomacy that has found new and more effective instruments in information
and communication technologies (ICT).
New ICT enable an unprecedented opportunity to reach hitherto inaccessible
public. That, however, requires proper understanding and wise use of the
power, limitations and risks involved in the very type of media. The chapter
highlights the growing role of ICT in public diplomacy and points out new
foreign policy challenges. New ICT ought to be seen within the scope of new
dimensions in diplomacy and international relations. That includes, inter alia,
transformation of communication from classical one-way to two-way flow of
information, active participation in communication frameworks, facilitation of public interest and its engagement in public diplomacy through innovative
forms.
Public diplomacy faces a number of challenges brought by new ICT.
Communication is becoming one of the key and most frequent social activities.
At the same time, web 2.0 has moved the limits of interpersonal communication
and media environment, as well as political communication, political marketing
and international politics. Diplomatic institutions therefore ought to keep
enhancing their capacities able to communicate at the new level with the broad
public as partner to diplomacy.
... While the OECD provides internationally comparable R&D data, this data largely represents wealthier countries, often excluding middleincome and poorer nations that focus more on technology adoption than innovation (Keller, 2010). Most empirical studies on the subject have relied on business sector R&D stocks constructed via the perpetual inventory method using OECD R&D expenditure data (Coe & Helpman, 1995;Coe et al., 1997Coe et al., , 2009Engelbrecht, 1997). Alternatively, patents provide another method of constructing R&D stocks, potentially offering broader inclusivity. ...
... Panel B classifies countries based on their human capital index into quartiles: Q1 being countries with the highest human capital and Q4 being the lowest on average, for countries in the G7. This is in line with the results of Coe and Helpman (1995) and Engelbrecht (1997), who find similar evidence, but in contrast with the results found by Coe et al. (2009), who report that countries in the G7 have a lower coefficient for domestic R&D stocks. However, there are no discernible differences in the coefficients for foreign R&D stocks between G7 and non-G7 nations. ...
This study explores the influence of international knowledge spillovers on productivity across 23 OECD countries over 49 years, focusing on the role of economic size, human capital, and import intensity. Using a dynamic Common Correlated Effects (CCE) estimator, the research addresses cross-sectional dependency and unobserved common shocks that may bias traditional estimates. The findings challenge previous studies by showing statistically insignificant long-run effects of both domestic and foreign R&D stocks. However, the results reveal that G7 countries and those with higher levels of human capital gain more from domestic R&D, while the benefits of foreign R&D diminish as import intensity increases. Additionally, non-linear relationships between foreign R&D and productivity are observed in countries with lower import share of GDP. These results highlight the need for context-specific R&D policies that consider national factors such as economic size, human capital, and trade dynamics.
... A section of the literature has focused on the impacts of R&D on productivity. In this context, Coe and Helpman (1995) find that foreign R&D has beneficial effects on domestic productivity, and the estimated rates of return on R&D to be high, both in terms of domestic output and international spillovers (Engelbrecht (1997)). ...
... The index of innovation linkages would also aid in capturing cross-sectoral, in addition to cross-national, connections that are often hard to determine (Dietzenbacher 2000). Indeed, as noted by Engelbrecht (1997) and others, some innovation occurs outside the R&D sector. A broader index would capture some of these aspects. ...
This paper identifies channels of influence of foreign linkages on innovative activity in nations and it compares the relative effects of aggregate innovation linkages, FDIs, high-tech imports, and ICT imports, on patenting across a large sample of nations. Whereas various drivers of the international innovative activity have been studied in the literature, our understanding of the contributions of different linkages to innovation deserves more attention. We ask: Are the different innovation linkages equally complementary to research inputs in fostering innovation? We find that a broader index of innovation linkages shows positive and significant spillovers on innovation. We also find some support for the positive link between FDIs and innovation; however, high-tech imports and ICT imports have opposite effects on innovation, with the former effect being negative. These spillovers are reinforced by the positive and expected impacts of R&D spending. In other results, greater venture capital investments boost innovation in most cases. The findings are somewhat sensitive across two alternative measures of patenting and there are some nonlinearities in the influence of FDIs and imports on innovation.
... The first wave of studies at the country level propose an empirical framework to test the effect of international R&D spillovers considering trade, particularly imports of intermediate goods, as a major channel of technology transfer in line with the then-new endogenous growth models. In fact, according to this strand of literature the extent and importance of international spillovers may depends on the economic relations between countries, such as the volume of their bilateral trade (Coe and Helpman 1995, Coe et al. 1997, Engelbrecht 1997, Lichtenberg and Van Pottelsberghe de la Potterie 1998, Bayoumi et al.1999, Crespo et al. 2004, Coe et al. 2009). Generally, two alternative weighting schemes that were originally proposed to measure trade-related spillovers (Coe and Helpman 1995, Lichtenberg and Van Pottelsberghe de la Potterie 1998). ...
... Despite the significant of international R&D, Engelbrecht (1997) found that human capital resources decreases the estimate coefficient of international R&D spillovers which emphasizes the dual role of human capital for domestic innovation and TFP catch-up process. In fact, the idea behind the introduction of human resources variable along with R&D variable in an extending version of Coe and Helpman (1995) model is to capture the effect of others type of innovation like "learning by doing" and aside with the effect of innovation through formal R&D. ...
... This expression indicates that the skilled labor used by the technology sector is positively associated with creating new capital goods. It is important to note that this growth rate of goods produced from human capital is closely linked to productivity growth, due to the positive link between the stock of human capital and productivity (Engelbrecht 1997). ...
Corruption and informality are issues which have attracted a great amount of empirical research, since they are variables that can affect economic development in various and complex ways, with direct and indirect effects on economic growth. In this context, the objective of this investigation is to assess the impacts of corruption and informality on economic growth and productivity in countries from Latin America and the OECD (Organisation for Economic Co-operation and Development). To achieve this, a 3SLS-GMM estimation is proposed to manage the endogeneity of the variables in the system of equations. Subsequently, a simulation analysis is conducted to quantify the impacts of increases in corruption and informality on growth and productivity, as well as the influence of human capital in counteracting these impacts. The main findings of the research are as follows: (i) corruption decreases economic growth and productivity in both groups of countries; (ii) informality negatively affects economic growth and productivity; (iii) increases in corruption and informality reduce economic growth and productivity; and (iv) human capital has a positive impact on economic growth and reduces the negative impacts of corruption and informality.
... Modern corporations enjoy transient monopoly blessings until subsequent improvements emerge (Aghion & Howitt, 1992). Engelbrecht (1997) highlighted the multifaceted role of human capital and Research and Development in fostering home innovation and facilitating international expertise spillovers, which in flip power monetary increase. Blackburn (2000) incorporated Research and Development with human capital accumulation in an endogenous increase model, drawing on the ideas of (Grossman & Helpman, 1989;Lucas, 1988;Mansha, Yang, Ul Mustafa, & Nasim, 2022;Romer, 1990;Uzawa, 1965). ...
This study examines the impact of research and development (R&D) expenditures on economic growth, with a focus on industrial development in Pakistan and a comparative analysis with developed countries. Despite being the sixth most populous country, Pakistan faces significant challenges in achieving sustained growth. Using a panel least squares regression model, this study analyzes the data of eight countries over a period of 25 years, including Pakistan and seven G7 nations i.e. France, the United States, the United Kingdom, Germany, Japan, Italy, and Canada. The correlation results reveal that R&D expenditures positively and significantly impact GDP across these countries. The GDPs of the G7 countries are significantly higher to Pakistan, highlighting the potential for substantial economic gains through increased R&D investment. The model shows a high R² and adjusted R², explaining 88.79% of the variation in GDP, with significant predictors including research expenditures and the lagged GDP into R&D expenditure. These findings suggest that for Pakistan, increasing R&D expenditure could lead to notable improvements in GDP and overall economic performance. Recommendations to increase government allocation to R&D, focusing on key industries such as textiles, automobile, electronics, technological advancement and infrastructure, and implementing policies that encourage private sector investment in R&D. Additionally, enhancing academic research and providing a roadmap for policymakers to foster industrial and economic development in Pakistan.
... Coe and Helpman (1995) provided additional support for this assertion, claiming that productivity growth has a positive relationship with R&D investments. Engelbrecht (1997) examined the robustness of Coe and Helpman's (1995) findings by incorporating the human capital variable into their model. Therefore, it is evident that innovation plays a crucial role in economic growth, as it can increase productivity and competitiveness. ...
The purpose of this paper is to investigate how innovation is related to economic growth, and whether digitalization moderates this relationship. We examine this relationship using a two-step difference generalized method of moments (GMM) in a sample of 300 country-year observations from developed and developing economies from 2014 to 2019. The findings show that innovation is positively and significantly related to economic growth, but that this effect is stronger in high-income countries than in upper middle-income countries. The digital infrastructure and the digital market have positively and significantly moderated the relationship between innovation and economic growth for the high-income countries, but this effect is minimal for upper middle-income countries. The policy implications of this study suggest that policymakers in upper middle-income countries should invest more in the digital economy to increase economic competitiveness and growth. Furthermore, the findings suggest that policymakers and governments should improve regulations and policies to ensure that the benefits of digitalization are shared equally.
... Finally, technological distance refers to the capacity for technological transfer. Regarding internal factors, human capital, generally education, is an component that can accelerate the process of technological diffusion (Engelbrecht, 1997;Nelson and Phelps, 1966). Following Romer (1990b), De Mello (1999 integrates the role of human capital in TFP, considering that the educational process is a form of investment that accelerates the process of technological diffusion. ...
Technical progress, often measured through changes in total factor productivity (TFP), has been extensively examined within the economic literature. Researchers have proposed that institutional quality is a key driver of TFP. Specifically, while institutions influence business efficiency, financial sector dynamics, and human capital development, they are also critical to providing the conditions that incentivize cooperation and innovation, in turn, augmenting TFP. This study undertakes an examination of the nexus between institutional quality (IQ) and TFP growth across a sample of 20 countries situated in the Americas using annual data from 2002 to 2019. The findings of this study substantiate the premise that enhanced IQ engenders an upswing in the rate of TFP growth, even after controlling for key production inputs, trade integration and macroeconomic conditions. In particular, institutions that promote citizen voice and authority accountability, and nurture a positive perception of the public sector's efficacy, reflecting trust in the state’s competency, are found to be key drivers of productivity growth within the American region.
JEL codes: O47; OO43; E0.
... This result was obtained from their examination of the role of human capital in economic development, from aggregate cross-country data. Other research results prove that the total factor of productivity of a country is dependent on its human capital productivity (Benhabib and Spiegal 1994;Rauch, 1993;Engelbrecht, 1997). ...
Innovation clusters are essential in the economic development of many developed countries across the world. While they present ways for under-developed
and developing countries to grow their economies, fully operational innovation clusters are yet to be established in Nigeria. Many experts argue that
learning from experience is an effective way of galvanizing economic development. Therefore, in this study, an empirical analysis involving a multi-variable
quantitative analysis was used to examine the factors that influence the performance of the Daedeok Innopolis Innovation Cluster (South Korea). The
results obtained show that the investment in education, Research and Development (R&D), labor capacity of key players within the innovation cluster, and
the transfer of technology (within the cluster) were essential factors that influence the performance of the Daedeok Innopolis Innovation Cluster.
... Coe et al. (2009) have shown that, even after accounting for the effect of the human capital stock on total factor productivity (TFP), domestic and foreign R&D capital stocks considerably influence TFP. However, Engelbrecht (1997) found the effect of domestic R&D capital to be smaller than what had been empirically established earlier (e.g. by Coe and Helpman (1995)). R&D capital expenditure is crucial for transforming economies from low productivity trajectories to high productivity trajectories. ...
This paper examines the relationship between the structure of R&D fixed capital spending, measured as the ratio of the private sector to public sector R&D capital expenditure, and national total factor productivity. It employs South African data for the period 1965 to 2019. This study employs the non-linear distributed lag modelling framework to cater for non-linearities in the relationship. The findings, first, suggest that the ratio of private sector to public sector R&D capital spending has a positive effect on total factor productivity. Second, the structure of R&D capital spending has large asymmetric effects on national total factor productivity, with negative changes dominating positive changes. Negative changes in the structure of R&D capital spending negatively influence total factor productivity, but positive changes have positive effects. Both in the short run and the long run, cumulative multipliers indicate that negative changes in the structure of R&D capital spending dominate positive changes by a very large margin. The findings imply that the private sector must become more dominant than the public sector in R&D capital spending in the national system of innovation.
... This also allows to benefit directly from the production of the capital goods underlying the 4IR, or from the creation of new business sectors made possible by technological advancement. Furthermore, increased investment in R&D should raise the demand for a more highly educated and skilled workforce (Autor et al. 1998), thereby augmenting the positive externalities exerted by the knowledge economy (OECD 1996;Engelbrecht 1997) with consequent multiplier effects on employment and wages. ...
This work correlates the impact of robotization on employment and households’ income at the regional scale with the level of investment in R&D and education policies. This kind of policy, by raising the qualitative and quantitative levels of human capital, contributes to improving the complementarity effect between humans and robots, thus mitigating the substitution effect. To this end, we compute the Adjusted Penetration of Robots (APR) (a metric used to measure the extent to which robots are being used in a particular industry or sector) at the sectoral level, combining the International Federation of Robotics database for the stock of robots, EUROSTAT Regional database, and the STructural ANalysis database on 150 NUTS-2 regions of the Euro area. We then perform a spatial stacked-panel analysis on the investment in R&D and education level. Results supports the idea that regions that invest more in R&D and have higher levels of human capital can turn the risk of robotization into an increase in both income and "quantity of work," by enhancing complementarity between robots and the labor force. On the contrary, regions investing less in R&D and having lower levels of human capital may suffer a reduction in households’ disposable income.
... The CH model validates the technology spillover effect of international trade and has thus become a widely used model in this field of technology spillover. Later, Engelbrecht (1997) assessed the robustness of the CH model with the inclusion of human capital variables. Coe et al. (1997) found that developing countries can capture larger R&D spillover from developed countries by importing intermediate goods and capital equipment by using used the CH model. ...
Whereas the technology spillover effect of international trade has been widely concerned by academic circles, the impact of trade barriers on technology spillover has received relatively less attention. This paper assesses the heterogeneity of international technology spillover effects in China’s manufacturing industry from traditional gross trade and value-added trade perspectives. Moreover, a deep insight into the effects of tariff and non-tariff barriers on international technology diffusion from traditional gross trade and value-added trade perspectives is also provided. Results show that the international trade indeed engenders technology diffusion, which is especially true in value-added trade characterized by intermediate goods trade compared with traditional gross trade. Additionally, tariff barriers severely disrupt technology diffusion in international trade, and traditional gross trade statistics underestimate the cumulative destructive effect of trade barriers on technology diffusion. Consequently, it can be concluded that reducing the abuse and misuse of non-tariff barriers can moderate the negative effect of trade barriers on international technology diffusion. JEL classification numbers: F14. Keywords: Global value chains; Value-added trade; Trade barriers; International technology spillover; Manufacturing industry.
... To construct the measure of industrial R&D, we follow the steps of calculating total R&D capital stocks suggested by Coe and Helpman (1995) and used by subsequent papers (e.g. Bayoumi et al., 1999;Engelbrecht, 1997;Le, 2008Le, , 2010Le, , 2022Le and Bodman, 2011) in the R&D-based growth literature. After getting data on nominal industrial R&D expenditure from OECD Statistical Database, we deflate it by an R&D price index to generate real R&D expenditure, RD, before moving on to calculate the R&D capital stock, SD, such that SD it = (1 − d)SD it−1 + RD it−1 (the depreciation rate d is chosen to be 5%). ...
This paper examines the effect of frontier academic research on technological development and the way institutional quality influences this impact. Using a dataset that covers 18 OECD countries over the 2003–2017 period, we find that frontier academic research exerts an important influence on total factor productivity. First, frontier academic research induces technological change by directly enhancing production processes and management methods. Second, frontier academic research stimulates industrial innovations, which in turn improves productivity. Regarding the moderating effect of institutional variables on these relationships, we find that positive moderation only exists for some, not all, of the institutional variables. In that case, a higher level of these variables is found to strengthen the way countries reap benefits from frontier academic research and industrial innovation. However, the moderation of institutions is much less clear with the process that turns frontier academic research into industrial innovations.
... where VA is value-added and TFP is a broad definition of total factor productivity (see Erken et al., 2009), which has been used by many researchers (Engelbrecht, 1997;Coe and Helpman, 1995;Guellec and de la Potterie, 2004). Usually, in the literature equation (11) appears in growth accounting form as following: ...
The purpose of this paper is to determine the impact of e-commerce (EC) on total factor productivity (TFP) of Iranian manufacturing SMEs. The model is based on both econometrics and growth accounting approach to fill the gaps of previous studies. This study model uses two years of panel data and has six EC measurements: number of employees using computer, number of employees using the internet, using the internet to gather and offer information, e-buying, and e-selling. Estimated results show that among EC measures, two are the best, most accurate and reliable measures, namely, e-selling and using the internet to offer information; and with the number of employees using the internet, have positive impacts on TFP indicated by highly significant coefficients of EC. Consequently, SMEs using the internet for selling electronically, using the internet to offer information and the number of employees using the internet have higher TFP on average, and with significant technological progress experienced by SMEs, EC can raise their TFP.
... As Farole et al. (2009, p. 25) (after Rodríguez-Pose, 1999 argue, 'the local economic tissue may lack the capacity to successfully absorb the fruits of technological progress realized elsewhere and to achieve the passage to innovation themselves'. Essentially, the concentration of R&D and high-quality human resources stimulates returns on R&D expenditure (Audretsch & Feldman, 1996;Engelbrecht, 1997). It is to the detriment of lessdeveloped countries or regions lacking capacity that they successfully attract physical and human capital. ...
This paper analyses the effect of the macroeconomic efficiency of Cohesion Policy on within-country economic cohesion as reflected by various measures of sigma convergence by applying macroeconomic HERMIN models for the Czech, Polish and Slovak regions. The results reveal that from 2021 to 2027, Cohesion Policy will have a relatively small impact on within-country convergence. More importantly, Cohesion Policy seems to be doomed to fail in terms of reducing within-country disparities in the long run; that is, the structural differences among regional economies effectively prevent European Union support from narrowing the development gap between regions.
https://www.tandfonline.com/eprint/IWHBVFMQRW8HZQ4RDI7H/full?target=10.1080/00343404.2022.2037541
... Evidence of productivity enhancing effects of research and development and technology transfer can be found in several empirical studies such as Coe and Helpman (1995), Frantzen (2000), Zachariadis (2003), Bronzini andPiselli (2009), Edquist andHenrekson (2017), etc. The same is true for empirical analysis on the impact of human capital (Griliches, 1970;Coe, Helpman and Hoffmaister, 1997;Engelbrecht, 1997;Männasoo et al., 2018;Barcenilla, Gimenez and López--Pueyo, 2019;etc.). ...
... Six countries in the sample do not have data on productivity include: Honduras, Mauritius, Nicaragua, Panama, Paraguay, and El Salvador. 9 See also Engelbrecht (1997); Dowrick and Nguyen (1989); Madsen (2007) where ΔY i is the outcome variable of country i (output growth, TFP, consumption growth, investment growth). Excess i is the intensity of the pandemic, measured as the excess death rate from Influenza and pneumonia. ...
We evaluate the 1968 H3N2 Flu pandemic’s economic cost in a cross-section of 52 countries. Using excess mortality rates as a proxy for the country-specific severity of the pandemic, we find that the average mortality rate (0.0062% per pandemic wave) was associated with a decline in output of 2.4% over the two pandemic waves. Our estimates also suggest the losses in consumption (-1.9%), investment (-1.2%), and productivity (-1.9%) over the two pandemic waves. The results are robust across regressions using alternative measures of mortality and output loss. The study adds to the current literature new empirical evidence on the economic consequences of the past pandemics in light of the potential impacts of the Covid-19 pandemic on productivity.
... Our paper relates and adds to the literature pioneered by Coe and Helpman (1995) and subsequent studies on (domestic and internationally generated) knowledge and productivity growth (Park 1995;Eaton and Kortum 1996;Engelbrecht 1997;Keller 1998Keller , 2002bKao et al. 1999;Schiff and Wang 2006;Coe et al. 2009). Imports of capital or intermediate goods are the main mechanism where embodied or disembodied knowledge of new production techniques and skills is transmitted. ...
We study the effects of unanticipated technological shocks across the most innovative economies in the world. We examine who leads and follows in the global technological race and how technological shocks in one country shape innovation activity in another. We put forward a useful approach in modeling the dynamic interdependencies of knowledge spillovers across countries, which exploits the modeling capabilities of the so-called network Global Vector Auto-Regressive (GVAR) framework. Our empirical evidence, on a selected panel of most innovative world economies over the period 1986–2013, show that the USA and China are the dominant countries in the system.
... This line of thinking also emphasizes that the sole reliance on spillovers may not only lead to a severe R&D underinvestment in lagging areas but may also condemn them to technological dependence, especially since the capacity of these areas to free-ride on technological advances generated elsewhere is limited (Rodríguez-Pose, 2001). Conversely, the Schumpeterian approach argues that returns from R&D rely heavily on the quality of the personnel conducting the research, on the concentration of R&D centers in limited areas, on the quality of the local human capital (Audretsch & Feldman, 1996;De Bondt, 1997;Engelbrecht, 1997), and above all, on the amount of investment (Dosi, 1988;Scherer, 1982). Limited and/or dispersed investment in R&D in lagging areas may not yield the expected returns in terms of technological progress since most R&D projects might lack optimal circumstances to conduct competitive research. ...
We assess the impact of the EU Regional Policy on regional economic growth by applying a new evaluation strategy, which integrates mediation analysis with a quasi-experimental framework. Using the R&D expenditure as an indicator of innovation capability, we evaluate how much of the total effect of the EU Regional Policy is due to R&D in the poorest EU regions. Consistently with the previous literature, we found a positive impact of the overall policy on economic growth, but, among the convergence regions, those investing a higher proportion of funds in R&D have the same convergence rate as regions investing more in other priorities. These findings confirm that the EU Regional Policy played an important role in the economic recovery of the poorest regions in the aftermath of the Great Recession. However, focusing resources on R&D does not seem to provide additional economic benefits, at least in the short run.
... Dans ce cas, une des pistes cŠest de considérer que la mise à disposition de ces infrastructures est facilitée par le capital humain. DŠautant plus quŠun autre volet de la littérature a également souligné que le capital humain peut jouer un rôle central dans la promotion de la croissance économique et des échanges commerciaux(Coe et al., 1997;Engelbrecht, 1997). Ces études ont élargi leur cadre en incorporant le capital humain dans leur analyse empirique. ...
Dans cette thèse nous analysons les mécanismes qui lient l'ouverture commerciale des pays à leur trajectoire d'industrialisation. Nous nous intéressons particulièrement aux pays en développement, notamment ceux du continent Africain, eu égard à leur forme particulière de spécialisation de la production— essentiellement orientée vers les produits agricoles et miniers. Nous visons à comprendre l'évolution de ces formes de spécialisations afin d'identifier des trajectoires possibles de développement industriel. Le Chapitre 1 offre un aperçu global de la littérature sur les déterminants théoriques de la spécialisation internationale et accorde une attention particulière aux théories insistant sur une vision dynamique des avantages comparatifs. Ce chapitre pose les bases de la thèse et des chapitres suivants. Il met en avant deux formes particulières de capital, à savoir le capital public et le capital humain, facteurs qui peuvent être à l'origine du développement d'un avantage comparatif dans le secteur manufacturier. A partir des données sectorielles pour des pays d'Afrique Sub-Saharienne et du Nord (ASSN) et d'une méthodologie d'estimation intégrant les déterminants classiques et néoclassiques des avantages comparatifs, le Chapitre 2 cherche à identifier les déterminants de la spécialisation de la production et son évolution au cours du temps. Le Chapitre 3 poursuit l'analyse à l'aide des données plus désagrégées au niveau des branches industrielles. Nous approfondissons les estimations en analysant les performances à l'exportation (à la différence de la spécialisation de la production) et portons un intérêt particulier au rôle joué par l'accumulation de capital public selon que les pays se trouvent loin ou à proximité de la frontière technologique mondiale. Si les deux premiers chapitres laissent apparaitre un certain rôle positif du stock de capital public dans le développement d'avantages comparatifs sur les branches industrielles, cet effet n'est pas systématique. Le Chapitre 4 tente d'expliquer ces ambiguïtés en prenant en compte la complémentarité entre capital humain et public, ce dernier étant envisagé ici comme de l'infrastructure publique mise à disposition de l'économie. Nous proposons un modèle théorique simple pour détailler cette idée et testons ces prédictions sur un échantillon similaire à celui mobilisé dans le chapitre précédent, considérant cette fois-ci des indicateurs d'avantage comparatifs révélés. Le chapitre montre que la capacité des infrastructures publiques à engendrer une industrialisation est d'autant plus importante que le stock de capital humain du pays est élevé.
... where gap it is the technology gap, and A i (t) is the current technology level of area i; maxA j (t) represent the technological boundaries of the country. According to Engelbrecht [77], if we assume that the ratio of material capital, human resources, and total factor productivity in the production function does not change over time, then per capita gross domestic product (GDP) can be used to measure the level of technology. Therefore, article assumes this A i (t) that the technological boundary in China is the maximum GDP per capita in all provinces, and it is measured by GDP per capita of region i. ...
The article aims to explore which types of proximity approach can foster university–industry (U-I) collaborations for innovation and discuss the role of different dimension regional absorptive capacity in cooperation to promote inter-regional partnerships from “unbalance” to “coordination”. Therefore, we intercept 484 pairs of cooperative entities and analyze proximity effects and heterogeneity cross-regional U-I collaborations by hierarchical regression. The results show: (1) In non-local contexts, geographic distance is not a hamper for improving innovation performance. The economic development level has no significantly different effects on such a role. (2) Technological proximity plays a negative role in increasing innovative performance, and the eastern region has the most noticeable results. (3) The closer in social distance can get more innovation performance in eastern and western, but the central area negatively affects. (4) The U-I collaborations for innovation performance-enhancing advantages are not equal for all regions but are moderating by specific regional absorptive capacity dimensions. The areas with a higher level of internal human capital can get more catch-up effects. The lagging regions should increase talents to promote cross-regional cooperation for catching up. In contrast, the prosperous areas should take advantage of the talent-gathering effects to promote knowledge spillover.
... The research on this particular theme is focused on transfer of technical knowledge among the subsidiaries of MNCs (Chiesa & Manzini, 1996), cross-border collaboration and funding between industry and academics to promote the technology development and transfer (Howells & Nedeva, 2003), R&D driven economic growth, cross-border knowledge spill over and innovation (Diao, Roe, & Yeldan, 1999). Other topics include R&D cooperation and knowledge spillovers, through joint ventures (Vonortas, 1994), the role of human capital in international knowledge transfer and productivity in OECD countries (Engelbrecht, 1997) and R&D networks and innovation in MNEs. ...
This paper systematically reviews the relationship between cross-border knowledge flows and innovation across several literature strands in international business, management, strategy and innovation. We contribute to the international business literature by documenting, for the first time, the evolving nature of the relationship between cross-border knowledge flows and innovation, across several themes. In particular, our unique reviewing technique allows us to uncover and map in detail how the cross-disciplinary literature strands have explored the topic in the past, how it has developed to our current level of understanding as well as giving insights into where the literature is likely to head and develop in the future. Our numerous findings cover both empirical and conceptual developments, which in turn have their origins partly in other disciplines. Knowing the interrelationships between disciplines on this topic offers us a rare insight into the complex nature of previous and ongoing research from which we draw a number of important implications for theory, practice as well as future avenues for research, through five pivotal areas, to which we contribute.
Rapporten analyserar vertikal industripolitiks roll och utmaningar i Sverige och globalt. Rapporten inleder med att diskutera industripolitikens ökande betydelse i ljuset av en rad globala kriser, inklusive finanskrisen 2008, COVID-19-pandemin och de geopolitiska förändringarna som följde av Rysslands invasion av Ukraina. Kriserna har visat på sårbarheter i de globala leveranskedjorna som fått många regeringar att ompröva statens roll för att säkerställa ekonomisk motståndskraft, säkerhet och innovation. Medlemmar av Europeiska unionen, USA och Kina har börjat implementera mer aktiva industripolitiska åtgärder riktade mot strategiska sektorer som grön teknologi, kritisk infrastruktur och insatsvaror.
En betydande del av rapporten fokuserar på motiveringen för vertikal industripolitik. Ett argument för en aktiv industripolitik är att marknadsmisslyckanden, såsom externa effekter, asymmetrisk information och samordningsproblem kräver statliga ingripanden. Till exempel behöver industrier med hög kapitalintensitet och långa utvecklingscykler, såsom batteri- och förnybar energisektorerna, ofta statligt stöd för att övervinna initiala inträdesbarriärer. Rapporten visar också riskerna med statligt ingripande, inklusive möjlig ineffektivitet, korruption och marknadsstörningar, särskilt när subventioner inte är välriktade eller behålls för länge.
Effective management of national science and research is on the constant rise, so the task of revealing how economic “return” from the research and development sector can be maximized is becoming more and more relevant. The article examines the mutual influence of the development of science and the funding of research and development in 97 countries around the world, on the one hand, and their national per capita incomes, on the other hand. A wide range of indicators is used, including patent activity, research and development expenditures, the number of researchers and the number of Scopus-indexed publications by subject area (relative to the population of countries). Among all the subject areas studied, the number of publications in economics is most closely related to the level of GDP per capita (PPP). We then use linear multiple regression to study the relation between the number of Scopus-indexed publications in economics and expenditures on research and development. A comparison of simulated data with real data shows that oil and gas producing countries (including Russia) demonstrate an economic level higher than expected. The leading world economies (USA, China, Japan, Germany, France, Great Britain) are well described by our resulting model. Ensuring high expenditure on research and development is of paramount importance for modern economic growth. In addition, an overall high level of publication activity is important, with particular attention to the development of research in economics.
Changes in climate policies have become a critical consideration for businesses, necessitating strategic adaptation and innovation in the face of evolving regulations to achieve long-term success. This study investigates the impact of climate policy uncertainty (CPU) on firm-level total factor productivity (TFP) using a dataset comprising 5954 North American listed companies from 2000 to 2019. Our findings demonstrate a significant negative relationship between CPU and firms' TFP. Particularly, firms operating in the secondary sector, with higher credit ratings, smaller Tobin's Q, and greater profitability, experience more significant negative effects from CPU. The mechanisms through which CPU operates include cost escalation, reduced turnover, and constrained investment. Employing the Local Projection Instrumental Variable (LP-IV) method, we observe that the relationship between CPU shocks and firm-level TFP is time-varying. The adverse effect of CPU on TFP is most severe in the third year following the occurrence of the shock. To mitigate the negative consequences, governments should enhance the continuity and foresight of climate policies, while firms need to effectively identify and manage climate risks to bolster their resilience in the face of uncertainty.
This study analyses the effect of international knowledge spillover on total factor productivity (TFP) in 24 sample countries from 1996 to 2020, focusing on the role of economic opportunities in sustaining this relationship. The purpose of the research is to shed light on the relationship between knowledge transfer and TFP, particularly as it relates to the role of economic opportunities. Knowledge spillover, total factor productivity, and economic opportunities are investigated by using Cross Sectionally Augmented Autoregressive Distributive Lag (CSARDL) econometric approaches to analyses panel data from a wide range of countries. The study's results show that international transfer of knowledge increases total factor productivity. Knowledge transfer via routes like trade and FDI is crucial to raising total factor productivity. However, it is evident that the import-related spillover is more effective than inward FDI in affecting total factor productivity in sample countries. Moreover, Knowledge spillovers via imports and incoming FDI are also found to have a substantial complementary link. The study also indicates that the extent of the knowledge spillover effect on TFP is heavily influenced by economic opportunities. Knowledge spillover is most beneficial to economically advanced nations with thriving business climates, and well-connected infrastructure. These nations provide a setting that encourages the integration of new ideas and practices, which boosts their productivity. However, it is difficult for less developed nations to reap the benefits of knowledge spillover due to their lack of economic opportunities. Poor institutions, a lack of basic infrastructure, and constrictive business environments all limit their ability to effectively use new knowledge to improve productivity. The study emphasizes the policy importance of these results. By prioritizing economic opportunities, countries can increase their capacity to absorb and leverage foreign knowledge, which in turn promotes total factor productivity growth and long-term economic development.
We study the relationship between technology spillovers from trade, domestic research and development (R&D) spending, and the growth in green total factor productivity within the agricultural sector. An empirical illustration is provided using a sample of 48 countries involved in China’s Belt and Road Initiative from 2000 to 2019. Our findings highlight the important role of agricultural imports as a positive driving force behind green productivity growth, while the impact of domestic R&D expenditures on agricultural productivity lacks statistical significance in our sample. Furthermore, we find that trade-related technological spillovers drive environmentally sustainable agricultural growth in economically developed nations, but this effect is weaker in developing countries. Conversely, greater domestic investment in agricultural research and development programs helps promote green productivity growth in relatively rich countries, but its influence diminishes in middle-income and developing countries. Lastly, a positive impact of importing vegetable and edible oil products on productivity is observed.
The gap in demand and supply of energy across Sub-Saharan African (SSA) countries has increased energy insecurity in the region. Therefore, power outages have become pervasive, causing unemployment and a decline in production output. Among the several energy-saving factors identified in the literature across developing economies, technological spillover driven by trade openness appears to be a prominent factor in improving energy efficiency. Thus, this study evaluates the impact of machinery imported from OECD and non-OECD countries and its corresponding research and development (R&D) spillover on energy efficiency performance in 18 SSA countries from 1995 to 2017. Using a stochastic energy distance function, we discover that aggregated data from OECD and non-OECD countries have no significant effect on energy efficiency performance across SSA countries. However, results from disaggregated data for OECD and non-OECD machinery imports show that OECD machinery imports improve energy efficiency contrary to non-OECD imports. Thus, technology spillover from OECD countries is advantageous for SSA countries to reduce long-term energy-based emissions. Furthermore, our results show that human capital has no significant effect on SSA energy efficiency. Consequently, the results possess some policy implications; for instance, policymakers responsible for promoting science and technology could increase investment in human capital development by developing technology and engineering expertise and increasing GDP allocation to R&D activities. For energy efficiency scores, we observe substantial differences in efficiency across SSA countries-implying potential improvements in energy efficiency across SSA countries.
Ülkeler açısından ekonomik entegrasyonlar, pazar ve piyasa bütünleşmesine, milli gelirin artışına, ekonomik kutuplaşmalardan korunmasına ve teknolojik yayılıma imkân sağlamasından dolayı büyük önem taşımaktadır. Ülkeler açısından önemli bir diğer konu ise teknolojik dönüşümü sağlayarak teknoloji kapasitelerini yükseltmektir. Teknolojik kapasiteyi arttırmanın literatürde iki alternatifi bulunmaktadır. Birinci alternatif Ar-Ge faaliyetlerine yoğunlaşarak kendi teknoloji üretimini sağlamak, ikincisi ve en çok tercih edilen yöntem olarak teknolojiyi transfer etmektir. Bu nedenle günümüz uluslararası rekabet ortamında ülkeler açısından önemli olan ekonomik entegrasyon ve teknolojik dönüşüm arasındaki karşılıklı ilişkiden, ekonomik entegrasyonların teknoloji transferine olan etkisinin tespit edilmesi araştırma konusu olarak değerlendirilmiştir. Araştırma konusu çerçevesinde Türkiye’nin entegrasyonlar yoluyla yapmış olduğu teknoloji transferine ve ülke içindeki yüksek teknoloji üretimine, AB ve ASEAN entegrasyonlarının etkilerinin incelenmesi çalışmamızın amacını oluşturmaktadır. Çalışmanın analiz kısmında 1996-2021 yıllarını kapsayan Türkiye, Avrupa Birliği (AB) ve ASEAN’a ait veriler kullanılmıştır. Çalışmanın amacına uygun yöntem olarak Peseran, Shin ve Smith (2001) ARDL sınır testi yaklaşımı belirlenmiştir. Analiz sonucunda Avrupa Birliği (AB) ve ASEAN açısından kısa ve uzun dönemde anlamlı ve pozitif sonuçların elde edilmiş ve ekonomik entegrasyonlar arasında AB’nin Türkiye’deki teknoloji kapasitesinin arttırılması noktasında katkısının daha fazla olduğu tespit edilmiştir. Ayrıca analizden çıkan bir başka sonuç da her iki entegrasyondan sağlanan doğrudan yabancı yatırımlarının (DYY) ve yüksek teknoloji ithalatının Türkiye’nin teknoloji seviyesine katkı yaptığı tespit edilmiştir.
Türkiye Cumhuriyeti kuruluşundan günümüze kadar içerde ve dışarda yaşamış olduğu acı tecrübeler sonrasında ekonomik kalkınmasını gelişmiş ülkeler seviyesine taşıyamadığı görülmektedir. Küreselleşmenin ülkelere dayattığı çıkmazlara karşı ayakta durabilmek adına teknolojik dönüşümün gerçekleştirmesi büyük önem taşımaktadır. Türkiye’de halen 2022 TÜİK rakamlarına göre yüksek teknoloji ihracatı %2.6 ile çok düşük seviyede olduğu görülmektedir. Bulunduğu coğrafya özelinde her konuda gelişmişlik göstermesi gereken Türkiye’nin bunu gerçekleştirirken ekonomik entegrasyonlar vasıtasıyla teknoloji transferini gerçekleştirmesi zaman ve maliyet açısından fayda sağlayacak ve nitelikli iş gücünün oluşması içinde zaman kazandıracaktır. Bu sebeple çalışmamızda ekonomik entegrasyonlar olarak AB ve ASEAN’ın Türkiye’nin gerçekleştireceği teknoloji transferine etkileri analiz edilerek, zaman ve maliyet açısından Türkiye’nin uygulayacağı politikaların belirlenmesi amaçlanmıştır. Böylece Türkiye’nin gelişmiş ülkeler liginde yer alması için hazırlanan samimi çalışmalarla birlikte literatürümüze katkı sağlayacağını düşünmekteyiz.
International Trade, Economic Integration, Technology Transfer, AB, ASEAN, Türkiye
As the second part of my empirical analysis, this chapter builds on Chap. 5 to further examine the relationship between heterogeneous R&D investments and the rates of ESTC in China’s industrial sectors, and test the basic assumptions in the framework constructed in this book. The major hypothesis put to test here is (4–16) suggested in Chap. 4, which states that investment in energy R&D has a positive effect on ESTC. Given that the existing statistics do not tell where R&D investment goes in the industrial sectors and of what nature it is, I need first to get clear on how energy R&D investment and non-energy R&D investment are measured, and then test empirically the relationship between R&D heterogeneity and the rates of ESTC through multiple econometric models.
With the advent of the digital age and urbanization in China, the digital economy (DE) has gradually become a new engine for city sustainability (SUS). DE and SUS rely on human capital (HC) accumulation and development. It is necessary to study the linear and non-linear impact of DE on SUS, and the moderating effect of HC on the relationship between DE and SUS. The data of 278 prefecture-level cities from 2011 to 2019 were collected. The fixed-effect model and panel threshold regression model were adopted. The results show that DE can significantly promote SUS, and there is a single threshold of HC. In areas with a low level of HC, DE significantly inhibits SUS, and in areas with a high level of HC, DE particularly promotes SUS. There is a regional heterogeneity about the role of DE on SUS. The innovation is that DE, HC, and SUS are first brought into the same research framework. Furthermore, the impact of specific stages of HC development on the relationship between DE and SUS was quantitatively investigated.
This paper examines the relationship between regulation and innovation from both theoretical and empirical perspectives. The theoretical model focuses on the role of competition policy (measured by increases in the number of firms) and the strength of intellectual property rights in fostering cost-reducing R&D, under both R&D competition and R&D cooperation. It is shown that, theoretically, competition policy and intellectual property rights are complements under R&D competition, while they are substitutes under R&D cooperation. Moreover, under R&D competition, innovation is maximized through strict competition policy and strong intellectual property rights; whereas under R&D cooperation, innovation is maximized through strict competition policy and weak intellectual property rights. The empirical model tests the effect of several regulatory policies on innovation in several MENA countries. The results of dynamic panel data regressions point that competition policy and intellectual property rights are complements. In addition to competition policy and intellectual property rights protection, the following country/regulation characteristics are considered: human capital, government efficiency, foreign direct investment, natural resources dependence, labor market regulations, and GDP level. The paper finds that the extent of regulations in all categories has statistically significant effects on R&D, except FDI. One explanation is that most FDI to the MENA region flows to natural resources and non-tradable sectors, which are less relevant to R&D than other sectors (e.g., manufacturing and information and communications technology sectors).
Most studies on knowledge diffusion and productivity focus on either R&D, foreign direct investment or patent citation flows, and rarely consider complementary, intangible investments such as business process redesign, the co-invention of new products and business models, and investments in human capital. Although the effects of complementary investments and their spillovers are often mentioned in the literature, there is a lack of in-depth research. This study aims to fill this gap, taking into account knowledge diffusion and complementarities between different intangible assets, and evaluating their effects on productivity. We propose new measures of knowledge, which consider these complementarities, by using principal component analysis (PCA) to aggregate intangibles, and the Niche overlap index to ease interpretation. The analysis is conducted on an unbalanced country-industry panel dataset of 13 European countries, constructed from a combination of sources such as INTAN-Invest, WIOD, World Bank and EU-KLEMS. We develop total factor productivity proxies, and estimate the effects of knowledge diffusion on productivity by means of GMM panel regressions. Results confirm the importance of considering complementarities for detecting knowledge spillover effects, especially in the case of domestic spillovers, while foreign spillovers are shown to be less effective, supporting the view of knowledge spillovers as a prevalently localised phenomenon.
p>This thesis comprises of three major chapters concerning the effects of demographic factors on aggregate human capital and through it on economic growth.
Although human capital can exist only embodied in individuals, this embodiment property has been relatively neglected in the literature. Chapter 3 aims in showing that exactly because of this property, the demographic features of an economy are very important for this economy's aggregate human capital and through it economic growth. In particular, instead of assuming an aggregate accumulation function of human capital, as in the literature, in chapter 3 I rather aggregate the education decisions of the individual economic agents. The result is that the demographic features of an economy affect its human capital accumulation in various ways, missed when one aggregates the accumulation function instead of the education decisions of the economic agents.
Although the endogenous technology literature recognises human capital as the power that drives technology and through it economic growth, it usually treats it as exogenous and fixed. As a result, it finds a linear relationship between the population size or growth rate and technological improvement. In chapter 4 I introduce human capital investment in an endogenous technology framework. It is shown that even without the effects of the previous chapter, population affects technological improvement both directly and through the stream of human capital, with technology also having a feedback effect on the latter. Multiple are therefore the effects of demographic factors on innovation and economic growth, which can explain certain facts, the most important of which is the growth patterns of the last two centuries.
Borrowing constraints on households have been found to have positive effects on physical and negative on human capital accumulation and economic growth. However, fertility is too expected to be affected by borrowing constraints, while it also interacts with the accumulation of both types of capital. The effects of borrowing constraints under assumptions of endogenous population is exactly what chapter 5 studies.</p
Innovation plays a vital role in driving Australia's economic growth, and the desire to quantify this relationship is ever present. This article quantifies the relationship between domestic gross expenditure on research and development (R&D) and gross domestic product (GDP) per capita growth to estimate the return on investment (ROI) to innovation for Australia. This article adopts the Jones and Summers (2020) approach to quantify the ROI of gross R&D spending for Australia. This novel yet simple macroeconomic approach complements other existing methodologies. It quantifies only economic benefits, excluding non‐monetary societal and environmental benefits. The baseline results state that 1 of R&D investment creates an average of 20.8 in economy‐wide benefits in today's dollars, and investment in R&D creates an average annual return of 104% for Australia. Importantly, this baseline result can be recalculated with adjustments to account for specific features of innovation activity. Incorporating a 10‐year delay between R&D and payoffs, combined with a correction for building R&D into new capital inputs (known as embodied capital deepening) to account for the additional time and costs associated with R&D expenditure yields lower results of $3.5 of economy‐wide benefits and 10% average annual return for every dollar spent on R&D. Even when corrections are applied to the baseline for conservative estimates, the economy‐wide returns to innovation are comparable to historical private investment returns in Australia.
Agricultural output in the United States nearly tripled between 1948 and 2017 even as the amount of labor used declined by nearly 76 percent. These opposing trends reflect continuing high labor productivity growth in agriculture. Total factor productivity (TFP) accounts developed and tracked by the USDA, Economic Research Service (ERS) show farmers adopted new technologies in production practices and increased their use in farm equipment, farm structures, seeds, livestock, chemical fertilizers and pesticides, and purchased services to replace self-employed and hired labor while maintaining or promoting output. The composition of the farm labor force also changed. In 1948, self-employed and unpaid family labor accounted for more than two-thirds of the farm workforce (which includes hired labor, self-employed, and unpaid family labor). With a faster declining pace than the hired labor, the total hour share of self-employed and unpaid family workers declined from 70 percent in 1948 to 52 percent in 2017. Moreover, the farm workforce attributes changed. In particular, the hired workforce and farm operators showed an increase in educational attainment. It is unclear how labor quality improvement through higher education affected productivity estimates and output growth in different time periods in the U.S. farm sector. This report draws on multiple data sources to assess how the farm workforce
changed over the last 70 years. It evaluates the impact of changes in farm labor characteristics, especially educational attainment, on U.S. agricultural productivity estimates and output growth in different periods.
While the paradox of plenty is given much weight on raging debates on resource endowment and growth path of the Southern Africa Development Community (SADC) countries. The study seeks to establish the effect of trade liberalisation on mining total factor productivity. The study employed panel data of selected seven countries from the SADC for the period 1990–2017. The countries in the sample include Botswana, South Africa, Tanzania, Namibia, Zimbabwe, the Democratic Republic of the Congo (DRC), and Zambia, and were chosen based on data availability. Hicks-Moorsteen productivity index was applied to generate the total factor productivity change. A panel auto regressive distributed lag model (PARDL) and pooled mean group (PMG) are the estimation techniques used. The inquiry is crucial to SADC because mining production is a source of foreign exchange that directly contributes to economic growth. However, with open economies of SADC study expects the easy flow and diffusion of technology to aid productivity in the mining sector (Griffith, Redding, & Van Reenen, 2014). Results indicate a positive and statistically significant long-run relationship between trade openness and total factor productivity change in the mining sector. The study recommends progressive trade openness in the mining sector, human capital development, research and development to augment technology transfer.
This article investigates whether student flows significantly channel academic knowledge from developed countries in the North to less developed ones in the South. It also examines if human capital absorbs and materialises this academic knowledge into technological development. Empirical analysis on a panel of 55 developing countries over 2003–2016 period indicates that student flows from the South to the North is an important vehicle for the North–South knowledge spillovers and human capital in the South strongly facilitates this diffusion process. These findings convey important implications for developing countries’ migration and education strategies that aim to promote innovation, technological development and growth performance. They are of special interests to policymakers and educational practitioners.
This paper proposes an estimation strategy that exploits recent non-parametric panel data methods that allow for a multifactor error structure and extends a recently proposed data-driven model-selection procedure, which has its roots in cross validation and aims to test whether two competing approximate models are equivalent in terms of their expected true error. We extend this procedure to a large panel data framework by using moving block bootstrap resampling techniques in order to preserve cross-sectional dependence in the bootstrapped samples. Such an estimation strategy is illustrated by revisiting an analysis of international technology diffusion. Model selection procedures clearly conclude in the superiority of a fully non-parametric (non-additive) specification over parametric and even semi-parametric (additive) specifications. This work also refines previous results by showing threshold effects, non-linearities, and interactions that are obscured in parametric specifications and which have relevant implications for policy.
This paper examines the relationship between trade patterns and international research‐and‐development (R&D) spillovers using Kao and Chiang's (1998) and Kao's (1999) recently developed panel cointegration techniques. Monte Carlo‐type tests demonstrate that the choice of weights used in constructing foreign R&D stocks is informative of the spillover transmission when panel cointegration techniques are employed. However, the evidence does not support a relationship between import patterns and R&D spillovers. The relationship between export patterns and R&D spillovers is then considered. Consistent with recent theoretical models (Ben‐David and Loewy 1998), the evidence suggests that exporters receive substantial R&D spillovers from their customers.
امروزه كارآفريني سازماني به علت تاثيرات سودمندي كه روي عملكرد و رقابت¬پذيري سازمان¬ها دارد، به موضوع مهمي تبديل شده است. پژوهش حاضر با هدف رتبه بندی 12 کسب و کار عمده و اساسی کارآفرین کشور بر اساس معیار های چهارده گانه شاخص جهانی کار آفرینی (GEI)انجام شده است. نخستین هدف «شاخص جهانی کارآفرینی» تحریک جریانهای سیاستی پیرامون برنامهها و رویدادهای کارآفرینی و کمک به گزینش و توسعۀ الگوهای کامیاب و طرحهای پایدار در این زمینه است. درونمایة این شاخص آن است که کارآفرینی عاملی حیاتی در توسعۀ اقتصادی است و اطلاعات کلیدی را برای توانبخشی اکوسیستم کارآفرینی کشورها برای سیاستگذاران فراهم میکند. این نظام برای رتبهبندی کشورها از سه بعد اندازیگیری کمک میگیرد: گرایشهای کارآفرینی (پنج شاخص)، تواناییهای کارآفرینی (چهار شاخص)، و اشتیاق کارآفرینی (پنج شاخص). جامعه آماری تحقیق دربرگیرنده کارآفرینان در دوازده کسب و کار کارآفرین عمده کشور می باشد . برای جمع آوری داده ها نظریات مربوط به 40 کارآفرین برتر در حوزه های مختلف مورد سنجش قرار گرفت. ابزار اصلی گردآوری داده¬ها در اين پژوهش، پرسشنامه استاندارد مهارت های کارآفرینی اسمیت و همکاران(۲۰۰۸) و پرسشنامه محقق-ساخته جهت سنجش شاخص های جهانی کارآفرینی می¬باشد. روایی هر دو پرسشنامه از نظر صوری، محتوایی و سازه مورد بررسی قرار گرفته و پایایی آنها نیز با اجرای آزمایشی و محاسبه ضریب آلفای کرونباخ، 82/0 بدست آمد. استنتاج حاصله از نظر سنجی خبرگان با روش تاپسیس و وزن دهی آنتروپی شانون بررسی گردید و مشخص شد که ساخت و ساز ساختمانی بالاترین رتبه و تعمیر خودرو پایین ترین رتبه را داشته است.
Using cross-country estimates of physical and human capital stocks, we run the growth accounting regressions implied by a Cobb-Douglas aggregate production function. Our results indicate that human capital enters insignificantly in explaining per capita growth rates. We next specify an alternative model in which the growth rate of total factor productivity depends on a nation's human capital stock level. Tests of this specification do indicate a positive role for human capital.
This paper examines whether the Solow growth model is consistent with the international variation in the standard of living.
It shows that an augmented Solow model that includes accumulation of human as well as physical capital provides an excellent
description of the cross-country data. The paper also examines the implications of the Solow model for convergence in standards
of living, that is, for whether poor countries tend to grow faster than rich countries. The evidence indicates that, holding
population growth and capital accumulation constant, countries converge at about the rate the augmented Solow model predicts.
The Penn World Table displays a set of national accounts economic time series covering many countries. Its expenditure entries
are denominated in a common set of prices in a common currency so that real quantity comparisons can be made, both between countries and over time. It also provides information about relative prices
within and between countries, as well as demographic data and capital stock estimates. This updated, revised, and expanded
Mark 5 version of the table includes more countries, years, and variables of interest to economic researchers. The Table is
available on personal computer diskettes and through BITNET.
This paper outlines a theoretical framework for thinking about the role of human capital in a model of endogenous growth. The framework pays particular attention to two questions: What are the theoretical differences between intangibles like education and experience on the one hand, and knowledge or science on the other? and How do knowledge and science actually affect production? One implication derived from this framework is that the initial level of a variable like literacy may be important for understanding subsequent growth. This emphasis on the level of an input contrasts with the usual emphasis from growth accounting on rates of change of inputs. The principal empirical finding is that literacy has no additional explanatory power in a cross-country regression of growth rates on investment and other variables, but consistent with the model, the initial level of literacy does help predict the subsequent rate of investment, and indirectly, the rate of growth.
Infrastructure development is a priority on policy agendas in the EU and worldwide, because of the very high investment needs in basic infrastructure, especially in lagging behind regions and countries. The paper provides a descriptive analysis of the infrastructural gaps in EU transition economies at national and, as far as possible, regional level for some infrastructure sectors: transport, telecommunication, environment and energy. The analysis suggests that, on average, internal divergences in the infrastructures’ endowment are present between the urbanised capital cities regions and the peripheral and rural areas, in all the Member States; yet, the density and quality of such endowment is significantly higher in the Western countries and limited in the Eastern ones.
This paper considers the prospects for constructing a neoclassical theory of growth and international trade that is consistent with some of the main features of economic development. Three models are considered and compared to evidence: a model emphasizing physical capital accumulation and technological change, a model emphasizing human capital accumulation through schooling, and a model emphasizing specialized human capital accumulation through learning-by-doing.
A model is presented based on recent theories of economic growth that treat commercially oriented innovation efforts as a major engine of technological progress. We study the extent to which a country's total factor productivity depends not only on domestic R&D capital but also on foreign R&D capital. Our estimates indicate that foreign R&D has beneficial effects on domestic productivity, and that these are stronger the more open an economy is to foreign trade. Moreover, the estimated rates of return on R&D are very high, both in terms of domestic output and international spillovers.
Cross-country data on education and the labor force frequently are used to describe important dimensions of development and to estimate models of economic growth and growth determinants, the impact of education, and related phenomena. This investigation finds: (1) there are serious intertemporal and inter-country comparability problems with these data that may importantly affect inferences about labor force size, trends and productivity and schooling investments and impact; (2) data gaps are systematically related to levels of development and literacy; and (3) conclusions about the determinants or consequences of development based on constructed data that have been made available to fill data gaps can be seriously misleading.
This paper considers the prospects for constructing a neoclassical theory of growth and international trade that is consistent with some of the main features of economic development. Three models are considered and compared to evidence: a model emphasizing physical capital accumulation and technological change, a model emphasizing human capital accumulation through schooling, and a model emphasizing specialized human capital accumulation through learning-by-doing.
Growth in this model is driven by technological change that arises from intentional investment decisions made by profit-maximizing agents. The distinguishing feature of the technology as an input is that it is not a conventional good or a public good; it is a nonrival, partially excludable good. Because of the noconvexity introduced by a nonrival good, price-taking competition cannot be supported. Instead, the equilibrium is one with monopolistic competition. The main conclusions are that the stock of human capital determines the rate of growth, that too little human capital is devoted to research in equilibrium, that integration into world markets will increase growth rates, and that a large population is not sufficient to generate growth. Copyright 1990 by University of Chicago Press.
We construct a set of human capital indexes for the states of the United States for each census year starting in 1940. To do so, we propose a new methodology for the construction of index numbers in panel data sets. Our method is based on an optimal approach by which we choose the "best" set of index numbers by minimizing the expected estimation error subject to some research constraints. Some of the empirical findings are that the stock of human capital in the United States grew twice as rapidly as the average years of schooling and that human capital inequality across states went up during the 1980s (while the dispersion of schooling actually fell). We conclude that using the average years of schooling for the empirical study of existing growth models may be misleading. Copyright 2000 by Kluwer Academic Publishers
A central question for empirical economics, particularly economic growth, is which explanatory variables to include and exclude in the regressions. This paper aims to identify variables strongly correlated with provincial income growth in the Philippines by applying robustness procedures in determining which variables are strongly correlated with income growth. The extreme bound analysis (EBA) and Bayesian Averaging of Classical Estimates (BACE) were applied to fifteen determinants of income growth from a data set consisting of 74 Philippine provinces for the period 1985 to 2003 to test which among the explanatory variables are strongly correlated to growth. The tests show that among the fifteen variables, five variables stand out as being robust. The log of initial income, the ARMM indicator, the expenditure GINI and its square and the proportion of young dependents are all considered as strongly correlated to growth.
This lecture surveys recent models of growth and trade in search of descriptions of technologies that are consistent with episodes of very rapid income growth. Emphasis is placed on the on-the-job accumulation of human capital: learning by doing. Possib le connections between learning rates and international trade are discussed Copyright 1993 by The Econometric Society.
The relationship between cointegration and error correction models, first suggested by Granger, is here extended and used to develop estimation procedures, tests, and empirical examples. A vector of time series is said to be cointegrated with cointegrating vector a if each element is stationary only after differencing while linear combinations a8xt are themselves stationary. A representation theorem connects the moving average , autoregressive, and error correction representations for cointegrated systems. A simple but asymptotically efficient two-step estimator is proposed and applied. Tests for cointegration are suggested and examined by Monte Carlo simulation. A series of examples are presented. Copyright 1987 by The Econometric Society.
The authors examine the extent to which developing countries that do little, if any, research and development themselves benefit from R&D that is performed in the industrial countries. By trading with an industrial country that has a large 'stock of knowledge' from its cumulative R&D activities, a developing country can boost its productivity by importing a larger variety of intermediate products and capital equipment embodying foreign knowledge, and by acquiring useful information that would otherwise be costly to obtain. The authors' results, based on data for seventy-seven developing countries, suggest that R&D spillovers from twenty-two industrial countries over 1971-90 are substantial. Copyright 1997 by Royal Economic Society.
R&D spillovers are, potentially, a major source of endogenous growth in various recent "new growth theory" models. This paper reviews the basic model of R&D spillovers and then focuses on the empirical evidence for their existence and magnitude. It surveys the older empirical literature with special attention to the economic difficulties of actually coming up with convincing evidence on this topic. Taken individually, many of the studies are flawed and subject to a variety of reservations, but the overall impression remains that R&D spillovers are both prevalent and important. Copyright 1992 by The editors of the Scandinavian Journal of Economics.
The apparent convergence of OECD income levels since 1950 is subjected to rigorous testing that suggests that there has occurred a systematic process of catching up in levels of total factor productivity. An econometric model of relative economic growth exhibits parameter stability over three decades, including the period after 1973, and statistical robustness, particularly with respect to sample selection. A reassessment is made of OECD comparative economic growth performance. Copyright 1989 by American Economic Association.
Exxon Mobil and ConocoPhillips stock price has been predicted using the difference between core and headline CPI in the United States. Linear trends in the CPI difference allow accurate prediction of the prices at a five to ten-year horizon.
Caveat emptor: Cross-country data on education and the labor force The role of human capital in economic development: Evidence from aggregate cross-country data
- J Behrman
- M Rosenzweig
Behrman, J. and M. Rosenzweig, 1994, Caveat emptor: Cross-country data on education and the labor force, Journal of Development Economics 44, 147-17 1. Benhabib, J. and M. Spiegel, 1994, The role of human capital in economic development: Evidence from aggregate cross-country data, Journal of Monetary Economics 34, 143-173.
1994) comments on TFP and R&D measurement, and the comments by Behrman and Rosenzweig (1994) on human capital measurement. l2 See the Fagerberg (1994) survey of the recent empirical growth literature
- See
- Griliches
See, for example, the Griliches (1992, 1994) comments on TFP and R&D measurement, and the
comments by Behrman and Rosenzweig (1994) on human capital measurement.
l2 See the Fagerberg (1994) survey of the recent empirical growth literature, which provides
references to some of the few tested multi-equation models.