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Are There International R&D Spillovers Among Randomly Matched Trade Partners? A Response to Keller
Author:
Mr. David T. Coe
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Mr. Willy A Hoffmaister
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Series:
IMF Working Papers
Volume/Issue:
Volume 1999: Issue 018
Language:
English
Publication Date:
01 Feb 1999
DOI:
https://doi.org/10.5089/9781451843620.001
ISBN:
9781451843620
ISSN:
1018-5941
Pages:
21
Keywords:
WP; research and development; share; R&D; spillovers; technology; total factor productivity; import share; R&D capital stock; spillover estimate; random sampling; import weight; Imports; Stocks; Trade balance; Plurilateral trade
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund