The Korean Journal of Economic Studies
International Trade, Human Capital and R&D Spillovers
Woongyong Han (Korea Institute of S&T Evaluation and Planning) and Yongil Jeon (Sungkyunkwan University)Year 2017Vol. 65No. 1
This study extended the endogenous growth model of Coe and Helpman(1995) to examine the effects of trade and human capital on R&D spilloversin 22 OECD countries (1981 to 2011). The analysis confirmed that trade is anindirect channel of R&D spillovers. In addition, TFP is negatively influencedby foreign R&D stocks of G7 countries, and positively by those of non-G7countries. Furthermore, Human capital promotes technology catching up. Theimplications of this study are as follows. In order to increase TFP productivity,it is necessary to accumulate human capital along with R&D expenditure, andto establish a proper international trade network so that foreign R&Dinvestments have positive effects on domestic TFP.