Trade-related spillovers and industrial competitiveness: Exploring the linkages for OECD countries
Journal
Economic Modelling
Journal Volume
54
Pages
309-325
Date Issued
2016
Author(s)
Abstract
This study examines how trade-related spillovers impact the OECD countries' industrial competitiveness; with an emphasis on China's innovative efforts and reintegration into the global economy. In comparison with the major R&D countries, benefits attributable to spillovers are found to be more sizable for the rest of the OECD countries.This result is consistent with the observed convergence of competitiveness between the two groups of countries during 1990-2009. Moreover, our empirical results suggest China's trade-related spillovers can produce both positive and negative effects on OECD countries' industrial competitiveness. The persistence of the spillover effects is found even after controlling for trade openness creating possible spurious association. Finally, our finding TFP growth as the competitiveness driver stresses the consequential role of STI (science, technology, and innovation) policies in supporting sustainable and balanced growth. © 2016 Elsevier B.V.
Subjects
China; Direct spillovers; Indirect spillovers; Industrial competitiveness; OECD countries; Total factor productivity growth
Type
journal article