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A model is presented based on recent theories of economic growth that treat commercially oriented innovation efforts as a major engine of technological progress. We study the extent to which a country's total factor productivity depends not only on domestic R&D capital but also on foreign R&D capital. Our estimates indicate that foreign R&D has beneficial effects on domestic productivity, and that these are stronger the more open an economy is to foreign trade. Moreover, the estimated rates of return on R&D are very high, both in terms of domestic output and international spillovers. Keywords: Productivity; R&D; Spillover

We examine the growth promoting roles of R&D, international R&D spillovers, and trade in a world econometric model. A country can raise its total factor productivity by investing in R&D. But countries can also boost their productivity by trading with other countries that have large 'stocks of knowledge' from their cumulative R&D activities. We use a special version of MULTIMOD that incorporates R&D spillovers among industrial countries and from industrial countries to developing countries. Our simulations suggest that R&D, R&D spillovers, and trade play important roles in boosting growth in industrial and developing countries. Keywords: Productivity; R&D; Spillovers; North-South

A study was conducted to evaluate research on wage and price developments in the US and Germany. Earlier research has focused on the impact of labor, price and tax wedges on such developments. However, a consideration of short-run dynamic results requires an application of the two-step co-integrating model for estimates of the target real wage bargaining model. The determination of unit coefficients and cointegration will generate results similar to such research processes.

The article discusses the effects of globalisation on labour markets on the Organisation for Economic Co-operation and Development (OECD) countries. Due to the economic emergence of China and India in the international trade, the global supply of labour has increased in large size. Technological advances contributed to heightened income inequality and changed the nature of globalisation itself. In this paper, it is argued that these developments are best characterized as the intensification and broadening of process of globalisation rather than a fundamental change in the nature of globalisation. Nonetheless, China and India will have long-lasting effects on the labour markets of OECD countries, particularly on policies set out in the Restated OECD Job Strategy.

We estimate a gravity model to address the question of whether Africa's bilateral trade with industrial countries is 'unusual' compared with other developing country regions. Our main finding is that the unusually low level of African trade is explained by economic size, geographical distance and population. This result holds after controlling for a country's access to the sea, composition of exports, linguistic ties with industrial countries and trade policies. If anything, the average African country tends to 'overtrade' compared with developing countries in other regions, although the degree to which Africa overtrades has steadily declined over the past two-and-one-half decades. [ABSTRACT FROM AUTHOR]

Presents estimates of an aggregate production function for France, focusing on the role of trade and the importance of capital accumulation by government, households and businesses. Application of Johansen's cointegration methodology; Estimated elasticity of output with respect to research and development capital; Absence of an exogenous technological progress; Effects of integration with the European economy.

Examines the extent to which less developed countries hardly invest in research and development (R&D) benefit from R&D. Transmission channels of R&D spillovers identified by theories of economic growth; Estimated elasticities of total factor productivity with respect to foreign R&D capital stocks, machinery and equipment import shares.