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

Juan Ricardo Perilla Jimenez

doi:10.1080/09638199.2020.1729229

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 journal › Article › Academic › peer-review

Abstract

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 language	English
Pages (from-to)	748-773
Number of pages	26
Journal	Journal of International Trade & Economic Development
Volume	29
Issue number	6
Early online date	21 Feb 2020
DOIs	https://doi.org/10.1080/09638199.2020.1729229
Publication status	Published - 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"

Keywords

Cointegration
vector error correction models
economic development and growth
technology change
innovation
EAST-ASIAN MIRACLE
OIL-PRICE SHOCK
GREAT CRASH
UNIT
WORLD
ART

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Cite this

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

abstract = "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.",

keywords = "Cointegration, vector error correction models, economic development and growth, technology change, innovation, EAST-ASIAN MIRACLE, OIL-PRICE SHOCK, GREAT CRASH, UNIT, WORLD, ART",

author = "{Perilla Jimenez}, {Juan Ricardo}",

note = "Funding Information: The author gratefully acknowledges comments and suggestions received from Thomas Ziesemer at Maastricht University, Bart Verspagen and Adriaan Van Zon (UNU-MERIT), Carolina Castaldi, Utrecht University and Jan Fagerberg, University of Oslo. The comments of participants at the Worldwide University Network (WUN) 3–4 April 2016 Maastricht -- The Netherlands, and from colleagues and students at the Universidad del Norte are greatly appreciated as well. Lastly, the author gratefully acknowledges comments and suggestions of the two anonymous referees and the Editor of the Journal of International Trade and Economic Development. The usual disclaimers apply. Publisher Copyright: {\textcopyright} 2020 Informa UK Limited, trading as Taylor & Francis Group.",

year = "2020",

month = aug,

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doi = "10.1080/09638199.2020.1729229",

language = "English",

volume = "29",

pages = "748--773",

journal = "Journal of International Trade & Economic Development",

issn = "0963-8199",

publisher = "Routledge/Taylor & Francis Group",

number = "6",

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T1 - Testing the impact of technology diffusion and innovation on long-run growth using cointegration techniques

AU - Perilla Jimenez, Juan Ricardo

N1 - Funding Information: The author gratefully acknowledges comments and suggestions received from Thomas Ziesemer at Maastricht University, Bart Verspagen and Adriaan Van Zon (UNU-MERIT), Carolina Castaldi, Utrecht University and Jan Fagerberg, University of Oslo. The comments of participants at the Worldwide University Network (WUN) 3–4 April 2016 Maastricht -- The Netherlands, and from colleagues and students at the Universidad del Norte are greatly appreciated as well. Lastly, the author gratefully acknowledges comments and suggestions of the two anonymous referees and the Editor of the Journal of International Trade and Economic Development. The usual disclaimers apply. Publisher Copyright: © 2020 Informa UK Limited, trading as Taylor & Francis Group.

PY - 2020/8/17

Y1 - 2020/8/17

N2 - 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.

AB - 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.

KW - Cointegration

KW - vector error correction models

KW - economic development and growth

KW - technology change

KW - innovation

KW - EAST-ASIAN MIRACLE

KW - OIL-PRICE SHOCK

KW - GREAT CRASH

KW - UNIT

KW - WORLD

KW - ART

U2 - 10.1080/09638199.2020.1729229

DO - 10.1080/09638199.2020.1729229

M3 - Article

SN - 0963-8199

VL - 29

SP - 748

EP - 773

JO - Journal of International Trade & Economic Development

JF - Journal of International Trade & Economic Development

IS - 6

ER -

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

Abstract

JEL classifications

Keywords

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