International R&D Spillovers: An Application of Estimation and Inference in Panel Cointegration |
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| Authors: | Chihwa Kao Min-Hsien Chiang & Bangtian Chen |
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| Institution: | Syracuse University,;National Cheng-Kung University,;Guzman &Company |
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| Abstract: | In this paper, we apply the asymptotic theory of panel cointegration developed by Kao and Chiang (1998) to Coe and Helpman's (1995) international R&D spillovers regression. The OLS with bias-correction, the fully-modified (FM) and the dynamic OLS (DOLS) estimations produce different predictions about the impact of foreign R&D on total factor productivity (TFP) although all the estimations support the result that domestic R&D is related to TFP. |
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