Abstract
This paper investigates whether technology spills over across national borders and technology regimes. We advocate a modeling strategy where changes in technical efficiency capture technology spillovers as industries absorb and implement the best-practice (frontier) technology. Recently developed dynamic panel-based techniques are used to determine whether efficiency series move together in the long run (cointegrate) and/or move closer together over time (converge). We contribute to the literature by controlling for technological heterogeneity and for cross-sectional dependence in the data. For a panel of manufacturing industries in six EU countries, we find evidence of long-run relationships among industries' efficiency levels in different countries and technology regimes.
Furthermore, we find convergence among manufacturing industries, both across
countries and across technology regimes.
Furthermore, we find convergence among manufacturing industries, both across
countries and across technology regimes.
| Original language | English |
|---|---|
| Place of Publication | Utrecht |
| Publisher | UU USE Tjalling C. Koopmans Research Institute |
| Number of pages | 31 |
| Publication status | Published - Oct 2008 |
Publication series
| Name | Discussion Paper Series / Tjalling C. Koopmans Research Institute |
|---|---|
| No. | 32 |
| Volume | 08 |
| ISSN (Electronic) | 2666-8238 |
Keywords
- technology spillovers
- efficiency
- panel cointegration
- convergence
- manufacturing industries