Are There International R&D Spillovers Among Randomly Matched Trade Partners? A Response to Keller
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
Keller (1998) reexamines Coe and Helpman’s (1995) analysis of international R&D spillovers focusing on the weights used to define the foreign R&D capital stock. Keller creates “random” weights and shows that they give rise to positive estimates of international R&D spillovers, casting doubts on the robustness of Coe and Helpman’s findings. We show that Keller’s “random” weights are essentially simple averages with a random error. We derive alternative random weights and present regressions showing that when they are used to define the foreign R&D capital stock, the estimated international R&D spillover estimates are nonexistent, as would be expected.
Series:
Working Paper No. 1999/018
Subject:
Financial institutions Imports International trade Plurilateral trade Production Stocks Total factor productivity Trade balance
English
Publication Date:
February 1, 1999
ISBN/ISSN:
9781451843620/1018-5941
Stock No:
WPIEA0181999
Pages:
21
Please address any questions about this title to publications@imf.org