International spillovers of knowledge and sectoral productivity growth: some evidence for Canada and the United States |
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Authors: | Richard A Brecher Ehsan U Choudhri Lawrence L Schembri |
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Institution: | Department of Economics, Carleton University, 1125 Colonel By Drive, Ottawa, ON K1S 5B6, Canada |
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Abstract: | This paper develops and tests a two-country model of a monopolistically competitive industry in which the production function shifts endogenously via national and international spillovers of knowledge. The basic version of this model implies that, in the long run, the growth rate of sectoral productivity is the same in each country. In support of this version, for a number of matched Canadian and US manufacturing industries, the paper finds that these two countries' rates of sectoral productivity growth tend to converge despite marked international differences in R and D. |
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Keywords: | R and D spillovers Endogenous productivity growth |
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