Are There International R&D Spillovers Among Randomly Matched Trade Partners?: A Response to Keller

21 Pages Posted: 10 Feb 2006

See all articles by David T. Coe

David T. Coe

International Monetary Fund (IMF); National Bureau of Economic Research (NBER)

Alexander W. Hoffmaister

International Monetary Fund (IMF) - Research Department

Date Written: February 1999

Abstract

Keller (1998) reexamines Coe and Helpman`s (1995) analysis of international R&D spillovers focusing on the weights used to define the foreign R&D capital stock. Keller creates random weights and shows that they give rise to positive estimates of international R&D spillovers, casting doubts on the robustness of Coe and Helpman`s findings. We show that Keller`s random weights are essentially simple averages with a random error. We derive alternative random weights and present regressions showing that when they are used to define the foreign R&D capital stock, the estimated international R&D spillover estimates are nonexistent, as would be expected.

Keywords: R&D, spillovers, technology, total factor productivity

JEL Classification: C15, F12, F2, O3, O4

Suggested Citation

Coe, David T. and Hoffmaister, Alexander W., Are There International R&D Spillovers Among Randomly Matched Trade Partners?: A Response to Keller (February 1999). IMF Working Paper No. 99/18, Available at SSRN: https://ssrn.com/abstract=880545

David T. Coe (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Alexander W. Hoffmaister

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States

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