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A Causal Analysis of the R&D Interactions between the EU and the US

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Author Info
Erdal Atukeren (ETH Zurich - KOF Swiss Economic Institute)

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Abstract

This paper examines the relationships between the aggregate R&D activities of the EU and the US using multivariate Granger-causality tests. Our estimation results indicate that the EU reacts positively to increases in R&D productivity in the US. On the other hand, R&D activity in the EU is a direct Granger-cause of both R&D and labour productivity in the US, and the effects are negative. It was shown in the literature that the US reacts submissively to successful Japanese R&D. We extend the literature by demonstrating that the US also reacts submissively to increased R&D effort in the EU.

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File URL: http://www.bepress.com/cgi/viewcontent.cgi?article=1301&context=gej
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Publisher Info
Article provided by International Trade and Finance Association in its journal Global Economy Journal.

Volume (Year): 7 (2007)
Issue (Month): 4 ()
Pages: 1
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Handle: RePEc:bep:glecon:7:2007:4:1

Note: oai:bepress.com:gej-1301
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Related research
Keywords: R&D races productivity spillovers Granger-causality EU's Lisbon targets

References listed on IDEAS
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  1. Petri Rouvinen, 2002. "R&D-Productivity Dynamics: Causality, Lags, and "Dry Holes"," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 123-156, May. [Downloadable!]
  2. Segerstrom, Paul S, 1998. "Endogenous Growth without Scale Effects," American Economic Review, American Economic Association, vol. 88(5), pages 1290-1310, December. [Downloadable!] (restricted)
  3. Richard Lipsey & Kenneth Carlaw, 2004. "Total factor productivity and the measurement of technological change," Canadian Journal of Economics, Canadian Economics Association, vol. 37(4), pages 1118-1150, November. [Downloadable!] (restricted)
  4. Jones, Charles I, 1995. "R&D-Based Models of Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 759-84, August. [Downloadable!] (restricted)
  5. Rachel Griffith & Stephen Redding & John Van Reenen, 2004. "Mapping the Two Faces of R&D: Productivity Growth in a Panel of OECD Industries," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 883-895, December. [Downloadable!] (restricted)
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  6. Timothy C. Sargent & Edgard R. Rodriguez, 2000. "Labour or Total Factor Productivity: Do We Need to Choose?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 1, pages 41-44, Fall. [Downloadable!]
    Other versions:
  7. Ravenscraft, D & Scherer, F M, 1982. "The Lag Structure of Returns to Research and Development," Applied Economics, Taylor and Francis Journals, vol. 14(6), pages 603-20, December.
  8. Eaton, Jonathan & Kortum, Samuel, 1996. "Trade in ideas Patenting and productivity in the OECD," Journal of International Economics, Elsevier, vol. 40(3-4), pages 251-278, May. [Downloadable!] (restricted)
    Other versions:
  9. José García-Quevedo, 2004. "Do Public Subsidies Complement Business R&D? A Meta-Analysis of the Econometric Evidence," Kyklos, Blackwell Publishing, vol. 57(1), pages 87-102, 02. [Downloadable!] (restricted)
  10. Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander W, 1997. "North-South R&D Spillovers," Economic Journal, Royal Economic Society, vol. 107(440), pages 134-49, January. [Downloadable!] (restricted)
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  11. Gavin Cameron, 2005. "The Sun Also Rises: Productivity Convergence Between Japan and the USA," Journal of Economic Growth, Springer, vol. 10(4), pages 387-408, December. [Downloadable!] (restricted)
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  12. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October. [Downloadable!] (restricted)
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  13. Frantzen, Dirk, 1998. "R&D, International Technical Diffusion and Total Factor Productivity," Kyklos, Blackwell Publishing, vol. 51(4), pages 489-508.
  14. Dominique Guellec & Bruno Van Pottelsberghe, 2000. "The Impact of Public R&D Expenditure on Business R&D," OECD Science, Technology and Industry Working Papers 2000/4, OECD Directorate for Science, Technology and Industry. [Downloadable!]
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  15. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. [Downloadable!] (restricted)
    Other versions:
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