R&D Spillovers and Growth: Specialization Matters

18 Pages Posted: 29 Dec 2005

See all articles by Arjan Lejour

Arjan Lejour

CPB Netherlands Bureau of Economic Policy Analysis; Tilburg University

Richard Nahuis

CPB Netherlands Bureau of Economic Policy Analysis (Deceased)

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.

Suggested Citation

Lejour, Arjan M. and Nahuis, Richard, R&D Spillovers and Growth: Specialization Matters. Review of International Economics, Vol. 13, No. 5, pp. 927-944, November 2005, Available at SSRN: https://ssrn.com/abstract=857785 or http://dx.doi.org/10.1111/j.1467-9396.2005.00545.x

Arjan M. Lejour (Contact Author)

CPB Netherlands Bureau of Economic Policy Analysis ( email )

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HOME PAGE: http://www.cpb.nl/en/medewerkers/arjan-lejour

Tilburg University ( email )

PO Box 90153
Tilburg, 5000 LE Ti
Netherlands
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HOME PAGE: http://https://research.tilburguniversity.edu/en/persons/arjan-lejour

Richard Nahuis

CPB Netherlands Bureau of Economic Policy Analysis (Deceased)

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