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

Author/Editor:

David T. Coe ; Alexander W. Hoffmaister

Publication Date:

February 1, 1999

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 99/18

English

Publication Date:

February 1, 1999

ISBN/ISSN:

9781451843620/1018-5941

Stock No:

WPIEA0181999

Format:

Paper

Pages:

21

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