| Summary: | The aim of this study is to examine the role economic freedom plays in R&D spillovers for the ASEAN-4 countries. The dynamic ordinary least square panel estimator (D-OLS) is employed using data from 1996 to 2015. There are three important conclusions that can be drawn from the reported results. First, foreign R&D is more important for productivity improvements than domestic R&D. Second, import is the main channel for foreign R&D spillovers. Third, economic freedom plays an important role in moderating both domestic and foreign R&D spillovers. Therefore, policymakers and governments should play an important role in promoting trade liberalization and other policies that enhance freedom of economic activities as both are expected to boost domestic productivity.
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