Testing the impact of technology diffusion and innovation on long-run growth using cointegration techniques

Juan Ricardo Perilla Jimenez*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review


The long-run relationship between technology diffusion, (local) innovation and productivity, and the impact of government intervention on long-run economic growth, are studied using a sample of 62 countries classified into successful and unsuccessful cases of catching-up. Our dataset is constructed by combining a large suite of statistics for a 30-year period spanning 1980-2010. We rely on conventional Johansen cointegration analysis on individual countries and discuss our findings based on the mean group estimates and empirical distributions of the results for each country classification. The evidence supports the importance of the interaction between technology diffusion and innovation, and the relevance of government coordination to boost innovation and economic growth.
Original languageEnglish
Pages (from-to)748-773
Number of pages26
JournalJournal of International Trade & Economic Development
Issue number6
Early online date21 Feb 2020
Publication statusPublished - 17 Aug 2020

JEL classifications

  • c32 - "Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models"
  • c53 - "Forecasting and Prediction Methods; Simulation Methods "
  • o33 - "Technological Change: Choices and Consequences; Diffusion Processes"
  • o47 - "Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence"


  • Cointegration
  • vector error correction models
  • economic development and growth
  • technology change
  • innovation
  • UNIT
  • ART

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