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R&D Spillovers and Growth: Specialization Matters

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  • Arjan Lejour
  • Richard Nahuis

Abstract

We explore the relationship between openness and growth by taking a closer look at trade‐related knowledge spillovers at the industry level. First, we estimate the relation between sectoral R&D expenditures, trade‐related spillovers, and growth. Next, we incorporate these R&D linkages in a computable general‐equilibrium model for the world economy. We simulate trade liberalization in the model with R&D spillovers and compare the effects on GDP in different regions with a non‐R&D‐based model simulation. We find that the GDP effects of trade liberalization are magnified considerably by R&D spillovers for some regions—notably Japan and Southeast Asia. In other regions, such as China, the additional GDP effects are modest. These findings can be traced back to changing specialization and import patterns.

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  • Arjan Lejour & Richard Nahuis, 2005. "R&D Spillovers and Growth: Specialization Matters," Review of International Economics, Wiley Blackwell, vol. 13(5), pages 927-944, November.
    • Handle: RePEc:bla:reviec:v:13:y:2005:i:5:p:927-944
    DOI: 10.1111/j.1467-9396.2005.00545.x
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    7. M. Ishaq Nadiri, 1993. "Innovations and Technological Spillovers," NBER Working Papers 4423, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Minor, Peter J., 2010. "Time as a Barrier to Trade: A GTAP Database of ad valorem Trade Time Costs," Conference papers 331960, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Andrea Fracasso & Giuseppe Vittucci Marzetti, 2013. "An empirical note on international R&D spillovers," Empirical Economics, Springer, vol. 45(1), pages 179-191, August.
    3. BOUCEKKINE, Raouf & GERMAIN, Marc, 2007. "Impacts of emission reduction policies in a multi-regional multi-sectoral small open economy with endogenous growth," LIDAM Discussion Papers CORE 2007011, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. Arjan Lejour & Paul Veenendaal & Gerard Verweij & Nico van Leeuwen, 2006. "Worldscan; a model for international economic policy analysis," CPB Document 111.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    5. Gelauff, George & Lejour, Arjan, 2006. "The new Lisbon Strategy: An estiamtion of the impact of reaching 5 Lisbon targets," MPRA Paper 16168, University Library of Munich, Germany.
    6. Pahan Prasada, 2011. "National and supranational institutions and trade," STUDIES IN TRADE AND INVESTMENT, in: Trade-led growth: A sound strategy for Asia, chapter 10, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    7. Arjan Lejour & Paul Veenendaal & Gerard Verweij & Nico van Leeuwen, 2006. "Worldscan; a model for international economic policy analysis," CPB Document 111, CPB Netherlands Bureau for Economic Policy Analysis.
    8. Devarajan, Shantayanan & Go, Delfin S. & Robinson, Sherman & Thierfelder, Karen, 2009. "Tax Policy and Carbon Emissions in South Africa," Conference papers 331869, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. George Gelauff & Arjan Lejour, 2006. "Five Lisbon highlights; the economic impact of reaching these targets," CPB Document 104.rdf, CPB Netherlands Bureau for Economic Policy Analysis.

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