R&D Spillovers, Trade Integration and Expansion of Trade Flows in East -West Asia and Pacific.

Globalization is a complementary pattern beyond borders that brings about international investment, foreign trade, expansion of information and technology, convergence of production and consumption and integration of financial markets. economic integration . is an aspect of globalization which causes a decrease in prejudicial preventions among 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. in this paper we focus on spillovers, arising from r&d development, trade relations and technology transfer. this study investigates the relationship between r&d spillovers, trade integration and their cross effects on expansion of trade flows in east - west asia and pacific. accordingly, we use an augmented gravity trade model and estimate it the panel data approach to analyze the impacts of r&d spillovers and other determinants on bilateral trade relations among the selected asia-pacific countries over the period of 1995-2008. the results indicate that r&d spillovers and integration accelerate the trade flows.