Knowledge Spillovers and Output Per Worker: An Industry‐level Analysis for Oecd Countries

Abstract

This study analyzes the impact of knowledge spillovers on output per worker at the industry level using a primal production function approach. The article makes three different contributions to the international spillovers literature: (1) it identifies trade‐related spillovers under alternative assumptions regarding the information transferred through imports; (2) it explores the importance of horizontal and vertical foreign direct investment (FDI) in knowledge spillovers; and (3) it looks at how institutional factors determine the impact of FDI‐related spillovers on productivity. The main findings of the study are: (1) international knowledge spillover is an important driver of industry output per worker, and the magnitude of this spillover effect varies with alternative assumptions about the information content embodied in imports, while high technology industries benefit significantly more from import‐related knowledge spillovers; and (2) the gains from FDI spillovers are primarily horizontal, but when institutional factors are considered, countries with stronger protection of intellectual property rights and a high “ease of doing business” tend to experience a substantial increase in the effectiveness of both horizontal and vertical FDI‐related spillovers. (JEL E24, F1, F6, O3, O4)

TFP estimation at firm level: The fiscal aspect of productivity convergence in the UK

“…This is a key difference between firms that undertake R&D projects and are exposed to higher degree of uncertainty. The higher level of tax liability weakens the borrowing capacity of firms that invest in innovation which can potentially discourage the generation of new knowledge (see for example Bournakis et al, 2017). A similar effect is also revealed when we split the sample between exporters and non-exporters, columns (5) and (6).…”

Enabling Women Entrepreneurs: Exploring Factors That Mitigate the Negative Impact of Fertility Rates on Female Entrepreneurship

“…Finally, as measure of openness, we control for trade (sum of exports and imports) as a percentage of GDP. Higher trade openness implies greater competition and, thus, scope for higher innovation and development (see Bournakis, Christopoulos, & Mallick, ). The variables urban population, trade openness, ratio of female to male LFPR and GDP per capita growth are taken from WDI, World Bank (2016) online database.…”

Does multilateral lending aid capital accumulation? Role of intellectual capital and institutional quality

“…Therefore some financial reforms help economic growth via stimulating production of innovation while some do not. Although trade and multinational activities by firms can improve productivity at the industry level, Bournakis et al (2018) suggest that these gains are bigger if there is an appropriate institutional environment in the host country. By using the highincome OECD countries, where protection of intellectual property rights is already strong, as an empirical evidence, they suggest the policy focus must be on simplifying the procedures for doing business.…”

“…, P48 (Legal institutions, property rights) 1. Introduction It is already established in the literature that long -t e r m ext ernal capital can flow into countries in the form of foreign direct investment or external debt , contribut ing to the productive capacity of a country ( s e e for example Bournakis et al, 2018;Mallick and Moore, 2008) . Earlier studies look ed at the link between foreign direct investment (FDI) and intellectual property rights (IPR ) relationship in capacity building (See Furukawa, 2 010; Akiyama and Furukawa, 2009;Kwan and Lai, 2003) .…”