How trade affects high-quality development through spillovers?

• Published in: Economic research - Ekonomska istraživanja Vol. 35; no. 1; pp. 6403 - 6421
• Main Authors: Zhao, Kai, Wu, Wan-shu, Ye, Jun-mei
• Format: Journal Article Paper
• Language: English
• Published: Pula Routledge 31.12.2022; Taylor & Francis Ltd; Taylor and Francis Group i Sveučilište Jurja Dobrile u Puli, Fakultet ekonomije i turizma Dr. Mijo Mirković
• Subjects: Capital investments; Competition; Econometrics; Economic growth; Economic theory; Endogenous; Growth models; high-quality development; highquality development; Human capital; Influence; Interdependence; International trade; Product differentiation; R&D; Research & development; spatial correlation; Spillover effect; spillovers; TFP; Trade
• ISSN: 1331-677X; 1848-9664
• DOI: 10.1080/1331677X.2022.2048201

This paper derives the empirical estimation model from the endogenous economic growth theory, and tries to provide an effective and reasonable answer to the question 'how trade affects high-quality development through spillovers' from the perspective of spatial interdependence. Based on the data of 69 countries from 2000 to 2015, it is confirmed that there is an obvious spatial correlation between neighboring countries' TFP, the TFP of geographical and economic neighboring countries shows 'competition effect', while the TFP of cultural neighboring countries shows 'first spillover effect, then competition effect'. The R&D capital investment has no spatial effect on TFP of geographically or economically neighboring countries, but it has a significant 'spillover effect' on TFP of culturally neighboring countries. Technology spillovers caused by international trade are not only an important factor for countries to promote TFP, but also the core driving force to achieve high-quality development.