Does public R&D expenditure matter for economic growth?

The aim of the paper is to quantify the impact of public research and development (R&D) expenditure on economic growth. The empirical evidence focuses on the 20 selected EU member states in the period of 1995-2013. The research is based on a dynamic panel regression model (Generalized Method of...

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Bibliographic Details
Main Author: Irena Szarowská
Format: Article
Language:English
Published: Centre of Sociological Research, Szczecin 2017-06-01
Series:Journal of International Studies
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Online Access:http://www.jois.eu/?334,en_does-public-rd-expenditure-matter-for-economic-growth-
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Summary:The aim of the paper is to quantify the impact of public research and development (R&D) expenditure on economic growth. The empirical evidence focuses on the 20 selected EU member states in the period of 1995-2013. The research is based on a dynamic panel regression model (Generalized Method of Moments). The results confirm positive and statistically significant impact of government R&D expenditure, which is the main driver for economic growth during the analysed period. Contrary, business expenditure on the same is found to be insignificant. Traditional growth variables (higher share of qualified human resources and higher intensity of investments) report the positive effects, although in the case of investments – only partial one. The significance for R&D coefficient remains robust to different sub-periods.
ISSN:2071-8330
2306-3483