Human capital, R&D, trade, and long-run productivity. Testing the technological absorption hypothesis for the Portuguese economy, 1960-2001

Research Policy

Volumn 39, Issue 3, 2010, Pages 335-350

  Teixeira, Aurora A C ^a   Fortuna, Natércia ^a  

^a UNIVERSITY OF PORTO   (Portugal)

Author keywords

Cointegration; Economic growth; Human capital; Innovation; Trade

Indexed keywords

CAPACITY BUILDING; COINTEGRATION; DEVELOPED COUNTRIES; DIRECT IMPACT; ECONOMIC GROWTHS; ENHANCING EFFECT; HUMAN CAPITAL; HUMAN CAPITAL DEVELOPMENT; HUMAN CAPITAL INVESTMENTS; HUMAN CAPITALS; TECHNOLOGICAL CATCH-UP; TECHNOLOGICAL CHANGE; TOTAL FACTOR PRODUCTIVITY;

INTERNATIONAL TRADE; INVESTMENTS; MACHINERY; PRODUCTIVITY;

ECONOMICS;

EID: 77649294590     PISSN: 00487333     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.respol.2010.01.009     Document Type: Article

References (113)

1. Abramovitz M. Catching up, forging ahead, and falling behind. Journal of Economic History 46 2 (1986) 385-406
2. Afonso O., and Aguiar A. Comércio Externo e Crescimento da Economia Portuguesa no Século XX. Pedro Lains e Álvaro Ferreira da Silva (org.) História Económica de Portugal (1700-2000), vol. III, O Século XX, Chapter 9 (2005), Instituto de Ciências Sociais da Universidade de Lisboa
3. Aghion P., David P.A., and Foraye D. Science, technology and innovation for economic growth: linking policy research and practice in 'STIG Systems'. Research Policy 38 (2009) 681-693
4. Alcorta L., and Peres W. Innovation systems and technological specialization in Latin America and the Caribbean. Research Policy 26 (1996) 857-881
5. Alfaro L., Chanda A., Kalemli-Ozcan S., and Sayek S. FDI and economic growth: the role of local financial markets. Journal of International Economics 64 (2004) 89-112
6. Archibugi D., and Cocoa A. Measuring technological capabilities at the country level: a survey and a menu for choice. Research Policy 34 (2005) 175-194
7. Athreye S., and Cantwell J. Creating competition? Globalisation and the emergence of new technology producers. Research Policy 36 (2007) 209-226
8. In: Aubert J.E., and Reiffers J.L. (Eds). Knowledge Economies in the Middle East and North Africa: Towards New Development Strategies (2003), World Bank, Washington, DC
9. Baer W., and Leite A.N. The economy of Portugal within the European Union: 1990-2002. The Quarterly Review of Economics and Finance 43 (2003) 738-754
10. Barreto, A. (Org.) (1999). A Situação Social em Portugal, 1960-1999. Lisboa: Imprensa de Ciências.
11. Barros P.P., and Garoupa N. Portugal-European Union convergence: some evidence. European Journal of Political Economy 12 (1996) 545-553
12. Batten J.A., and Vo X.V. An analysis of the relationship between foreign direct investment and economic growth. Applied Economics 41 (2009) 1621-1641
13. Ben-David D. Trade and convergence among countries. Journal of International Economics 40 (1996) 279-298
14. Benhabib J., and Spiegel M. The role of human capital in economic development: evidence from aggregate cross-country data. Journal of Monetary Economics 34 (1994) 143-173
15. Birkinshaw J., Hood N., and Jonsson S. Building firm-specific advantages in multinational corporations: the role of subsidiary initiative. Strategic Management Journal 19 3 (1998) 221-241
16. Blanchard O., and Portugal P. What hides behind an unemployment rate: comparing Portuguese and U.S. labor markets. American Economic Review 91 1 (2001) 187-207
17. Blomström M., Kokko A., and Globerman S. The determinants of host country spillovers from foreign direct investment: a review and synthesis of the literature. In: Pain N. (Ed). Inward Investment, Technological Change and Growth. The Impact of Multinational Corporations on the UK Economy (2001), Palgrave, Houndmills
18. Borensztein E., De Gregorio J., and Lee J.-W. How does foreign direct investment affect economic growth. Journal of International Economics 45 (1998) 115-135
19. Breschi S., and Lissoni F. Knowledge spillovers and local innovation systems: a critical survey. Industrial and Corporate Change 10 4 (2001) 975-1075
20. Cantwell J.A. Technological Innovation and Multinational Corporations (1989), Basil Blackwell, Oxford
21. Castro, F.B., 2004. Foreign direct investment in a late industrializing country: the Portuguese IDP revisited. FEP Working Paper No. 147, May 2004.
22. Chakraborty C., and Nunnenkamp P. Economic reforms, FDI, and economic growth in India: a sector level analysis. World Development 36 7 (2008) 1192-1212
23. Chong A., and Zanforlin L. Technology and epidemics. IMF Staff Papers 49 3 (2002) 426-455
24. Coe D.T., and Helpman E. International R&D spillovers. European Economic Review 39 (1995) 859-887
25. Coe D.T., Helpman E., and Hoffmaister A.W. North and South spillovers. Economic Journal 107 (1997) 134-149
26. Cohen W.M., and Levinthal D.A. Innovation and learning: the two faces of R&D. The Economic Journal 99 397 (1989) 569-596
27. Courakis, A.S., Roque, F.M., Fontoura, P., 1990. The Impact of Protection on the Evolution of the Portuguese Pattern of Trade: 1974-86. Working Paper 162. Universidade Nova de Lisboa, Dezembro.
28. CSF III Observatory. National Strategic Reference Framework-Portugal 2007-2013 (2007), Ministry of the Environment, Spatial Planning and Regional Development, Lisbon
29. David P.D. Path dependence, its critics and the quest for 'historical economics'. In: Garrouste P., and Ioannides S. (Eds). Evolution and Path Dependence in Economic Ideas: Past and Present (2000), Edward, Elgar Publishing, Cheltenham, England
30. Dibooglu S., and Enders W. Multiple cointegrating vectors and structural economic models: an application to the French Franc/US dollar exchange rate. Southern Economic Journal 61 4 (1995) 1098-1116
31. Dickey D., Jansen D., and Thornton D. A primer on cointegration with an application to money and income. In: Rao B. (Ed). Cointegration for the Applied Economist (1991), Macmillan, Basingstoke 58-78
32. Dickey D., and Fuller W. Likelihood ratio statistics for autoregressive time series with a unit root. Econometrica 49 (1981) 1057-1072
33. Dollar D. Outward-oriented developing economies really do grow more rapidly: evidence from 95 LDCs, 1976-85. Economic Development and Cultural Change 40 3 (1992) 523-544
34. EC, 2004. The Portuguese Economy after the Boom. Occasional Papers No. 8. European Commission, Directorate-General for Economic and Financial Affairs, Brussels.
35. Engle R., and Granger C. Co-integration and error correction: representation, estimation and testing. Econometrica 55 (1987) 251-276
36. Fabrizio K. Absorptive capacity and the search for innovation. Research Policy 38 (2009) 255-267
37. Fagerberg J., and Verspagen B. Technology-gaps, innovation-diffusion and transformation: an evolutionary interpretation. Research Policy 31 (2002) 1291-1304
38. Fagerberg J. A technology gap approach to why growth rates differ. Research Policy 16 (1987) 87-99
39. Fagerberg J., and Godinho M.M. Innovation and catching-up. In: Fagerberg J., Mowery D., and Nelson R. (Eds). The Oxford Handbook of Innovation (2005), Oxford University Press, New York
40. Freeman C. Technology Policy and Economic Performance: Lessons from Japan (1987), Frances Pinter, London
41. Furman J.L., Porter M.E., and Stern S. The determinant of national innovative capacity. Research Policy 31 (2002) 899-933
42. Gershenberg I. The Training and Spread of Managerial Know-how: a comparative analysis of multinational and other firms in Kenya. World Development 15 (1987) 931-939
43. Girma S. Absorptive capacity and productivity spillovers from FDI. A threshold regression analysis. Oxford Bulletin of Economics and Statistics 67 (2005) 281-306
44. Glass A., and Saggi K. International technology transfer and the technology gap. Journal of Development Economics 55 (1998) 369-398
45. Godinho M., and Simões V. I&D, Inovação e Empreendedorismo 2007-2013. Relatório Final. Estudo foi realizado por uma equipa do ISEG para o Observatório do QCA III. ISEG, Julho de 2005 (2005)
46. Gonçalves O.F. Convergência Real no Longo Prazo da Economia Portuguesa. Notas Económicas 11 (1998) 82-100
47. Gonçalves O.F., and Guimarães P. O investimento directo estrangeiro na indústria transformadora Portuguesa: uma abordagem sectorial e regional atravé s do emprego para o período 1982-1992. Estudos de Economia 16-17 3 (1997) 333-358
48. Granger C., and Newbold P. Spurious regressions in econometrics. Journal of Econometrics 2 (1974) 111-120
49. Griffith R., Redding S., and Reenen J. R&D and absorptive capacity: theory and empirical evidence. Scandinavian Journal of Economics 105 1 (2003) 99-118
50. Griliches Z. Productivity puzzles and R&D: another nonexplanation. Journal of Economic Perspectives 2 4 (1988) 9-21
51. Grossman G., and Helpman E. Innovation and Growth in the Global, Economy (1991), MIT Press
52. Haddad M., and Harrison A. Are there positive spillovers from direct foreign investment? Evidence from panel data for Morocco. Journal of Development Economics 42 (1993) 51-74
53. Hayashi F. Econometrics (2000), Princeton University Press, Princeton
54. Hermes N., and Lensink R. Foreign direct investment, financial development and economic growth. Journal of Development Studies 40 (2003) 142-163
55. Johansen S., and Juselius K. Maximum likelihood estimation and inference on cointegration with application to the demand for money. Oxford Bulletin of Economics and Statistics 52 (1990) 169-209
56. Jones C. Time series tests of endogenous growth models. Quarterly Journal of Economics 110 2 (1995) 495-525
57. Kim L., and Dahlman C. Technology policy for industrialization: an integrative framework and Korea's experience. Research Policy 21 (1992) 437-452
58. Kim S., Lim H., and Park D. Imports, exports and total factor productivity in Korea. Applied Economics 41 (2009) 1819-1834
59. Kocherlakota N., and Yi K.-M. Is there Endogenous Long-Run Growth? Evidence from the United States and the United Kingdom. Journal of Money Credit and Banking 29 (1997) 235-262
60. Krugman P., and Macedo J.B. The economic consequences of the April 25th revolution. Economia 3 3 (1979) 455-483
61. Lains P. Catching-up to the European core: Portuguese economic growth, 1910-1990. Explorations in Economic History 40 (2003) 369-386
62. Laranja M. The development of technology infrastructure in Portugal and the need to pull innovation using proactive intermediation policies. Technovation 29 (2009) 23-34
63. Lawrence, R., Weinstein, D., 1999. Trade and growth: import-led or export-led? Evidence from Japan and Korea. NBER Working Paper No. 7264.
64. Liu X., and Wang C. Does foreign direct investment facilitate technological progress? Evidence from Chinese industries. Research Policy 32 (2003) 945-953
65. Lopes J.S. A Economia Portuguesa Desde 1960 (1996), Gradiva
66. Lundvall B.A. National Systems of Innovation. Towards a Theory of Innovation and Interactive Learning (1992), Pinter, London
67. Macedo, J.B., 2007. Competitiveness and convergence in Portugal. GEE Papers No. 4, November de 2007.
68. MacKinnon J. Critical values for cointegration tests. In: Engle R., and Granger C. (Eds). Long-run economic relationships: readings in cointegration (1991), Oxford University Press, Oxford
69. MacKinnon J. Numerical distribution functions for unit root and cointegration tests. Journal of Applied Econometrics 11 (1996) 601-618
70. MacKinnon J., Haug A., and Michelis L. Numerical distribution functions of likelihood ratio tests for cointegration. Journal of Applied Econometrics 14 (1999) 563-577
71. Mankiw N., Romer D., and Weil D. A contribution to the empirics of economic growth. Quarterly Journal of Economics 107 2 (1992) 407-437
72. Markusen J.R., and Venables A. Foreign direct investment as a catalyst for industrial development. European Economic Review 43 (1999) 335-356
73. Mateus, A., 2005. A internacionalização da economia. In: Lains, P., Silva, A.F. (orgs.), História Económica de Portugal 1700-2000, vol. III, O século XX. Instituto Ciências Sociais, Lisboa, pp. 125-156.
74. Mayer, J., 2001. Technology diffusion, human capital and economic growth in developing countries. UNCTAD Discussion Papers No. 154, June 2001.
75. Mendi P. Trade in disembodied technology and total factor productivity in OECD countries. Research Policy 36 (2007) 121-133
76. Meyer, K., 2003. FDI spillovers in emerging markets: a literature review and new perspectives. DRC working paper 15. Copenhagen Business School.
77. Mowery D., and Oxley J. Inward technology transfer and competitiveness: the role of national innovation systems. Cambridge Journal of Economics 19 1 (1995) 67-93
78. Narula R., and Dunning J. Industrial development, globalization and multinational enterprises: new realities for developing countries. Oxford Development Studies 28 (2000) 141-167
79. Nelson R. Institutions and economic growth: sharpening the research agenda. Remarks upon receipt of the Veblen-Commons Award. Journal of Economic Issues 41 2 (2007) 994-1005
80. In: Nelson R.R. (Ed). National Innovation Systems (1993), Oxford University Press, Oxford and New York
81. Nelson R.R., and Phelps E.S. Investment in humans, technological diffusion and economic growth. American Economic Review LVI 2 (1966) 69-75
82. Neves, J.C., 1994. The Portuguese Economy: a Picture in Figures. XIX and. XX centuries. Lisbon, Universidade Católica Editora.
83. Newey W.K., and West K.D. Automatic Lag Selection in Covariance Matrix Estimation. Review of Economic Studies 61 (1994) 631-653
84. OECD, 1999. OECD Science, Technology and Industry-Scoreboard 1999-Benchmarking Knowledge-based Economies. http://www.oecd.org/dataoecd/42/53/2087228.pdf (accessed on August 2009).
85. OECD. OECD Science, Technology and Industry. Outlook 2000: Highlights (2000), OECD Publications Service, Paris
86. OECD. OECD Economic survey Portugal Structural reform for sustaining high growth. OECD Economic Surveys 2003 2 (2003) 198-288
87. OECD. OECD Science, Technology and Industry. Outlook 2004: Highlights (2004), OECD Publications Service, Paris
88. OECD. OECD Economic Surveys vol. 2008/9 (June 2008), OECD, Portugal
89. Pack H. Endogenous growth theory: intellectual appeal and empirical shortcomings. Journal of Economic Perspectives 8 1 (1994) 55-72
90. Pearce R.D. The evolution of technology in multinational enterprises: the role of creative subsidiaries. International Business Review 8 (1999) 125-148
91. Pereira J., and St Aubyn M. What level of education matters most for growth? Evidence from Portugal. Economics of Education Review 28 1 (2009) 67-73
92. Phillips P., and Perron P. Testing for a unit root in time series regression. Biometrica 75 (1988) 335-346
93. Rao B. Cointegration: For the Applied Economist (1994), Macmillan, Basingstoke
94. Rivera-Batiz, Luis A., and Xie D. Integration among unequals. Regional Science and Urban Economics 23 3 (1993) 337-354
95. Savvides A., and Zachariadis M. International technology diffusion and the growth of TFP in the manufacturing sector of developing economies. Review of Development Economics 9 4 (2005) 482-501
96. Silva E., and Teixeira A.A.C. Does structure influence growth? A panel data econometric assessment of 'relatively less developed' countries, 1979-2003. Industrial and Corporate Change (2009) Forthcoming
97. Stanisic N. Do foreign direct investments increase the economic growth of southeastern european transition economies?. South-Eastern Europe Journal of Economics 1 (2008) 29-38
98. Svarc J. Socio-political factors and the failure of innovation policy in Croatia as a country in transition. Research Policy 35 (2006) 144-159
99. Tavares A.T., and Young S. FDI and multinationals: patterns, impact and policies. International Journal of the Economics of Business 12 1 (2005) 3-16
100. Tavares, A.T., Teixeira, A.A.C., 2005. Human capital intensity in technology-based firms located in Portugal: do foreign multinationals matter? FEP Working Papers No. 187. Faculdade de Economia, Universidade do Porto.
101. Tavares J. Institutions and economic growth in Portugal: a quantitative exploration. Portugal Economic Journal 3 (2004) 49-79
102. Teixeira A.A.C. Measuring aggregate human capital in Portugal, 1960-2001. Portuguese Journal of Social Science 4 2 (2005) 101-120
103. Teixeira A.A.C. How has the Portuguese innovation capability evolved? Estimating a time series of the stock of technological knowledge, 1960-2001. Portuguese Journal of Social Science 6 2 (2007) 77-95
104. Teixeira A.A.C., and Costa J. What type of firm forges closer innovation linkages with Portuguese Universities?. Notas Económicas 24 (2006) 22-47
105. Teixeira A.A.C., and Fortuna N. Human capital, innovation capability and economic growth Portugal, 1960-2001. Portuguese Economic Journal 3 3 (2004) 205-225
106. Verspagen B. Uneven Growth Between Interdependent Economies: An Evolutionary View on Technology Gaps, Trade and Growth (1993), Avebury, Aldershot
107. Wang C., and Yu L. Do spillover benefits grow with rising foreign direct investment? An empirical examination of the case of China. Applied Economics 39 (2007) 397-405
108. Wang J., and Blomström M. Foreign investment and technology transfer. European Economic Review 36 (1992) 137-155
109. Wöβmann L. Specifying human capital. Journal of Economic Surveys 17 3 (2003) 239-270
110. Xu B. Multinational enterprises, technology diffusion, and host country productivity growth. Journal of Development Economics 62 (2000) 477-493
111. Xu B., and Chiang E. Trade, patents and international technology diffusion. Journal of International Trade and Economic Development 14 1 (2005) 115-135
112. Xu B., and Wang J. Trade, foreign direct investment and international technology diffusion. Journal of Economic Integration 15 4 (2000) 585-601
113. Zhu L., and Jeon B. International R&D spillovers: trade, FDI, and information technology as spillover channels. Review of International Economics 15 5 (2007) 955-976