In this paper, I analyze recent findings by Coe and Helpman (1995) on trade-related international R&D spillovers. A Monte Carlo based robustness test is proposed which compares the elasticity of domestic productivity with respect to foreign R&D estimated by Coe and Helpman with an elasticity...

In this paper, I analyze recent findings by Coe and Helpman (1995) of trade-related international R&D spillovers. I show generally that randomly created bilateral trade shares also give rise to large estimated international R&D spillovers; often, in fact, to larger estimated spillover effects...

In this paper, I analyze recent findings by Coe and Helpman (1995) on trade-related international R&D spillovers. A Monte Carlo based robustness test is proposed which compares the elasticity of domestic productivity with respect to foreign R&D estimated by Coe and Helpman with an elasticity...