Research and Development Expenditures and Economic Growth in the EU: A Panel Data Analysis
DOI:
https://doi.org/10.1515/eb-2016-0016Keywords:
Economic growth, panel data analysis, research and development expendituresAbstract
The main aim of the paper is to investigate the empirical relationship between research and development (R&D) expenditures and economic growth in the European Union member states in the period of 2000–2013. The empirical analysis is based on panel data regressions. The estimated model is the production function type standard growth model extended with R&D stock variable. The results show a statistically significant impact of R&D expenditures on the economic growth in the EU countries. The significance for R&D coefficient remains robust to different sub-periods, but the level of significance decreases as a sub-sample of new EU countries was considered.References
Europe 2020. (2015). European strategy for smart, sustainable and inclusive growth. Retrieved August 28, 2015, from http://ec.europa.eu/eurostat/statistics-explained/index.php/Europe_2020_indicators_-_research_and_development
Arellano, M., Bond, S. (1991). Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations. The Review of Economic Studies, 58 (2), 277–297. http://dx.doi.org/10.2307/2297968
Caselli, F., Esquivel, G. & Lefort, F. (1996). Reopening the convergence debate: a new look at cross country growth empirics. Journal of Economic Growth, 1 , 363–389. http://dx.doi.org/10.1007/BF00141044
Erins, I. & Vitola, L. (2014). R&D Expenditures by Sectors of Performance and Analysis of Performance Indicators in the Baltic States. Procedia-Social and behavioural Sciences, 156, 334–339. http://dx.doi.org/10.1016/j.sbspro.2014.11.198
Goel, R. K. & Ram. R. (1994). Research and development expenditures and economic growth: a cross – country study. Economic Development and Cultural Change, 42 (2), 403–411. http://dx.doi.org/10.1086/452087
Gumus, E. & Celikay, F. (2015). R&D Expenditure and Economic Growth: New Empirical Evidence. The Journal of Applied Economic Research, 9 (3), 205–217. http://dx.doi.org/10.1177/0973801015579753
Huňady, J. & Orviská, M. (2014). The Impact of Research and Development Expenditures on Innovation Performance and Economic Growth of the Country – the Empirical Evidence. CBU International Conference Proceedings 2014, 2 , 119–125. http://dx.doi.org/10.12955/cbup.v2.454
Krammer, S. (2010). International R&D spillovers in emerging markets: The impact of trade and foreign direct investment. Journal of International Trade & Economic Development, 19 (4), 591–623. http://dx.doi.org/10.1080/09638190902792464
Papke, L. E. & Wooldridge, J. M. (2005). A computational trick for delta-method standard errors. Economics Letters, 86 , 413–417. http://dx.doi.org/10.1016/j.econlet.2004.07.022
Parham, D. (2009). Empirical analysis of the effects of R&D on productivity: Implications for productivity measurement? Chapter in OECD/FSO: Productivity measurement and analysis , 337–355. http://dx.doi.org/10.1787/9789264044616-en
Romer, P. (1994). The Origins of Endogenous Growth. Journal of Economic Perspectives, 1 , 3–22. http://dx.doi.org/10.1257/jep.8.1.3
Sequeira, T. N. (2008). On the effects of human capital and R&D policies in an endogenous growth model. Economic Modelling, 25 (5), 968–982. http://dx.doi.org/10.1016/j.econmod.2008.01.002
Silaghi, M., Alexa, D., Jude, C., & Litan, C. (2014). Do business and public sector research and development expenditures contribute to economic growth in Central and Eastern Europe Countries? A dynamic panel estimation. Economic Modelling, 36 , 108–119. http://dx.doi.org/10.1016/j.econmod.2013.08.035
Svensson, R. (2008). Growth through Research and development – what does the research literature say? VINNOVA REPORT VR 2008:19 , 72.
Downloads
Published
Issue
Section
License
Copyright (c) 2016 Rita Freimane, Signe Bāliņa (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
How to Cite
