Abstract
This paper investigates whether technology spills over across national borders and technology regimes. We advocate a modeling strategy where improvements in technical efficiency capture technology spillovers as industries absorb and implement the best-practice technology. Dynamic panel-based techniques are used to determine whether efficiency series move together in the long run (cointegrate) and/or move closer together over time (converge). We control for technological heterogeneity and for cross-sectional dependence in the data. For a panel of manufacturing industries in six EU countries, we find evidence of technology spillovers and convergence among industries’ efficiency levels across countries and mainly across adjacent technology regimes.
| Original language | English |
|---|---|
| Pages (from-to) | 63-82 |
| Number of pages | 20 |
| Journal | Journal of Productivity Analysis |
| Volume | 46 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - Aug 2016 |
JEL classifications
- c23 - "Single Equation Models; Single Variables: Models with Panel Data; Longitudinal Data; Spatial Time Series"
- l60 - Industry Studies: Manufacturing: General
- o14 - "Industrialization; Manufacturing and Service Industries; Choice of Technology"
Keywords
- Technology spillovers
- Efficiency
- Panel cointegration
- Convergence
- Manufacturing industries
- 2 FACES
- HETEROGENEOUS PANELS
- RESEARCH-AND-DEVELOPMENT
- OECD INDUSTRIES
- DOMESTIC FIRMS
- FOREIGN DIRECT-INVESTMENT
- TECHNICAL CHANGE
- UNIT-ROOT TESTS
- ABSORPTIVE-CAPACITY
- PRODUCTIVITY GROWTH