R&D,Innovation and Knowledge Spillovers: A Reappraisal of Bottazzi and Peri (2007) in the Presence of Cross‐Sectional Dependence |
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| Authors: | Anna Bottasso Carolina Castagnetti Maurizio Conti |
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| Institution: | 1. Dipartimento di Economia, Università di Genova, Genoa, Italy;2. Dipartimento di Scienze Economiche e Aziendali, Università di Pavia, Pavia, Italy |
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| Abstract: | Bottazzi and Peri (Economic Journal 2007; 117 : 486–511) show the existence of a cointegrating relationship between the domestic stock of knowledge, domestic R&D and the international knowledge stock for a panel of OECD countries and interpret it as evidence supporting the semi‐endogenous versus the endogenous growth theory. We replicate the baseline specification of their study and we show that main results are robust to the use of a different estimation strategy (Bai et al., Journal of Econometrics 2009; 149 : 82–99) that duly takes into account cross‐sectional correlation: interestingly, in this case we also find a larger role for knowledge spillovers. Copyright © 2014 John Wiley & Sons, Ltd. |
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