Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/68100 
Year of Publication: 
2002
Series/Report no.: 
Department of Economics Discussion Paper No. 02,06
Publisher: 
University of Kent, Department of Economics, Canterbury
Abstract: 
Empirical studies on aggregate export behaviour have recently emphasised the role played by innovation as the main force driving product differentiation and competitiveness for developed countries. These studies treat foreign innovation as a variable that affects negatively national export shares. We incorporate the impact of foreign innovation in a standard new trade theory model and find that, if knowledge spillovers exist, foreign knowledge accumulation could even have a positive effect on national exports. We then test the model using aggregate export data for a set of 21 OECD economies and find that the foreign stock of knowledge affects exports positively for the less advanced countries in the sample and has no impact on exports for the G7 economies.
Subjects: 
knowledge spillovers
product differentiation
export functions
panel cointegration
JEL: 
F12
O31
C22
C23
Document Type: 
Working Paper

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