International R&D Spillovers: An Application of Estimation and Inference in Panel

@inproceedings{Chiang1997InternationalRS,
  title={International R&D Spillovers: An Application of Estimation and Inference in Panel},
  author={Min-Hsien Chiang and Chihwa Kao and Bangtian Chen},
  year={1997}
}
In this paper, we apply the asymptotic theory of panel cointegration developed by Kao and Chiang (1997) to Coe and Helpman's (1995) international R&D spillovers regression. The OLS with bias-correction, the fully-modified (FM) and the dynamic OLS (DOLS) estimations produce different predictions about the impact of foreign R&D on total factor productivity (TFP) although all the estimations support the result that domestic R&D is related to TFP.