DP1467 R&D Spillovers and Global Growth
|Author(s):||Tamim Bayoumi, David T Coe, Elhanan Helpman|
|Publication Date:||August 1996|
|Keyword(s):||North-South, Productivity, R&D, Spillovers|
|Programme Areas:||International Trade and Regional Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=1467|
We examine the growth promoting roles of R&D, international R&D spillovers, and trade in a world econometric model. A country can raise its total factor productivity by investing in R&D. Countries can also boost their productivity by trading with other countries that have large ?stocks of knowledge? from their cumulative R&D activities. We use a special version of MULTIMOD that incorporates R&D spillovers among industrial countries and from industrial countries to developing countries. Our simulations suggest that R&D, R&D spillovers, and trade play important roles in boosting growth in industrial and developing countries.