North-South Trade, Knowledge Spillovers and Growth

GEP Working Paper No. 02/23

24 Pages Posted: 1 Aug 2003

See all articles by Rod Falvey

Rod Falvey

Bond University - Department of Economics

David Greenaway

University of Nottingham - School of Economics

Neil Foster-McGregor

UNU-MERIT

Date Written: September 2002

Abstract

The endogenous growth literature has stimulated empirical research into links between trade and growth in general and international knowledge spillovers in particular. Results relating to the latter have been mixed and the issue of the appropriate construction of the spillover variable remains contentious. In this paper we develop measures taking account of whether knowledge is a public or private good in the donor and recipient countries, and include these in a dynamic panel model of growth. For a sample of five OECD donor countries and 52 developing recipient countries, we conclude that it matters little whether we treat knowledge as a private or public good in the donor but that spillovers, if they exist, act as a public good in the recipient. We also find that the level of trade is important in facilitating knowledge spillovers from donors to recipients.

Keywords: Knowledge Spillovers, Economic Growth, International Trade, Dynamic Panel Data

JEL Classification: F43, O30, O40

Suggested Citation

Falvey, Rod and Greenaway, David and Foster-McGregor, Neil, North-South Trade, Knowledge Spillovers and Growth (September 2002). GEP Working Paper No. 02/23, Available at SSRN: https://ssrn.com/abstract=413262 or http://dx.doi.org/10.2139/ssrn.413262

Rod Falvey (Contact Author)

Bond University - Department of Economics ( email )

Bond University - Department of Economics
Gold Coast, Queensland 4229
Australia

David Greenaway

University of Nottingham - School of Economics ( email )

University Park
Nottingham, NG7 2RD
United Kingdom
+44 115 951 5469 (Phone)
+44 115 951 4159 (Fax)

Neil Foster-McGregor

UNU-MERIT ( email )

Keizer Karelplein 19
Maastricht, 6211TC
Netherlands

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