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The Effect of Permanent and Transitory Shocks of Productivity on the Degree of Absorption of Technology Spillovers

Author

Listed:
  • Chehrazi Madreseh, Sorour

    (Master of Science, Shahid Bahonar university of Kerman)

  • Jalaee Esfandabadi, Seyed Abdolmajid

    (Professor, Shahid Bahonar university of Kerman)

Abstract

The economic and commercial progress of each country depends on the technical and industrial progress, and technical and industrial progress in various economic sectors is possible due to domestic research and development activities and the spillovers of international research and development and the use of their results in economic plans. R&D activities lead to the production of goods and services that can be traded and more effectively use of existing resources and absorbing advanced foreign technology. accordingly, in this study, The effect of productivity shocks on the degree of efficiency in technology spillovers were examined during the period of 1978-2017. for this purpose, the Blanchard-Quah technique have been used for the analysis of temporary and permanent productivity impacts and the structural vector autoregression (SVAR) have been used to study the effect of these two components on technological spillovers. the results of the model indicate that, while the permanent productivity shocks, the main cause of changes in technology spillovers, transitory productivity shocks, do not plays an important role in explaining the changes technology spillovers.

Suggested Citation

  • Chehrazi Madreseh, Sorour & Jalaee Esfandabadi, Seyed Abdolmajid, 2020. "The Effect of Permanent and Transitory Shocks of Productivity on the Degree of Absorption of Technology Spillovers," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 7(3), pages 51-70, October.
    • Handle: RePEc:ris:qjatoe:0198
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    More about this item

    Keywords

    Technology Spillovers; Total Factor Productivity; Transitory and Permanent Shocks; Blanchard-Quah Method; Research and Development;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices

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