International Trade,R&D Spillovers and Productivity: Evidence from Indian Manufacturing Industry |
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Authors: | Mavannoor Parameswaran |
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Affiliation: | 1. Centre for Development Studies , Trivandrum, India parameswaran@cds.ac.in |
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Abstract: | This paper examines the effect of trade facilitated R&D spillovers on the productivity of manufacturing firms in India, inter-sectoral variation in the effect on productivity and the importance of firms' investment in R&D, technology imports and plant and machinery in enhancing the productivity effect. Using firm level panel data, the study shows that R&D spillovers have a significant effect on productivity and that this effect is greater in technology-intensive industries. The paper also shows that firms' investment in plant and machinery enhances the productivity effect of R&D spillovers. The paper provides detailed micro-level evidence on the argument that trade openness promotes technological progress in developing countries. |
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