We investigate theoretically and empirically the impact of foreign direct investment (FDI) on the product innovation activity of Chinese firms. We extend the existing literature by examining a new type of spillover benefit, as well as new mechanisms by which knowledge spillovers occur. Theoretically, we extend the existing FDI spillover literature that mainly focuses on industry-level spillover...

This study suggests a two-step approach to identifying and interpreting regional convergence clubs in Europe. The first step calculates Bayesian probabilities for various assignments of regions to two clubs using a general stochastic space-time dynamic panel relationship between growth rates and initial levels of income as well as endowments of physical, knowledge and human capital. This approa...

An important policy question is whether research and development (R&D) in new, emerging technologies should be subsidized more than R&D in other more mature technologies. In this paper I analyze if innovation externalities caused by knowledge spillovers from private …rms may warrant a di¤erentiated R&D policy. I …nd that R&D in emerging and mature technologies should not be subsidized equally. ...

This study aims to understand how characteristics of a labor flow network affect firm productivity using an inter-firm hiring network constructed from individual job histories. We separate IT-labor from non-IT labor and use the network measures constructed from the two types of labor flow to evaluate how they affect firm performance. We find that hiring IT workers from a diverse set of firms ca...

Abstract In his seminal 1921 book, Risk, Uncertainty, and Profit , Frank Knight distinguished uncertainty risk. This paper applies Knight's concept of to knowledge generated in incumbent organizations explain the inherent difficulty assessing potential innovations along with key role played by spillover entrepreneurship as a conduit for transforming new created an organization but ultimately co...

This paper proposes a framework for studying policy making in a federal system in the presence of spillover externalities. Local jurisdictions choose policies by majority rule subject to constraints that are set by majority rule, but at the federation level. We characterize the induced preferences of voters for federal policies, prove existence of local majority rule equilibrium, provide an exa...

Using the Home Mortgage Disclosure Act (HMDA) national data from 1990 to 2015, we propose a method to identify potentially homosexual borrowers without requiring any self-disclosure on sexual orientation. Augmenting the HMDA data with the classical 1990 Boston Fed data and Fannie Mae Loan Performance data, we test whether their perceived homosexual status affects the approval, cost, and perform...

In the context of the debate on increased integration of Eurozone banking markets, this paper evaluates the impact of the Single Market on bank productivity and assesses the cross-border benefits of integration in terms of technological spillovers. We utilise a parametric meta-frontier Divisia index to estimate productivity change and identify technological gaps. We then assess the extent to wh...

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expresse...