R&D spillovers, trade integration and expansion of trade flows in the selected countries of East and West Asia and Pacific (1990-2000).

Globalization of economics is a complementary pattern beyond borders that brings about international investment, foreign trade, expansion of information and technology, contraction of nation economics, convergence of production and consumption and contraction of financial markets. In line with this economic integration that behaves in accordance with economic strategies and behaves in world economics creation, is the introduction of the presence of developing countries in world arena. In international literature, economic integration is a type of commercial policies that brings about decrease or omission of prejudicial preventions among associated countries. In addition it leads to the simplification of more extensive consumption markets, proficiency in production, use of capital and financial sources, use of technology spillovers, access to foreign investment and international cooperation. Here we introduced spillovers that indicate impressibility of a country from the situation and economic behavior of other countries. Spillovers have various channels; one instance is Research and Development (R&D). For a developing country, making effort to improve technology via domestic research and development sectors is a very slow and expensive process while the use of technology spillovers accelerates technology improvement and increase of productivity process. This study investigate the relationship between R&D spillovers, integration and their reciprocal effects on expansion of trade flows in East and West countries of Asia. We used gravity model with panel data for period of 1995-2004. The results indicate that R&D spillovers and integration accelerate the trade flows.

کلیدواژه ها:

R&D spillovers ، trade integration ، gravity model ، trade flow