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R&D Policies and Endogenous Growth: A Dynamic General Equilibrium Analysis of the Case for Canada *

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Madanmohan Ghosh

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Abstract

This paper utilizes a general equilibrium R&D model of endogenous growth via increasing capital variety to examine the impact of alternative policies on productivity and economic growth. The model is calibrated using data from the Canadian economy. Findings reveal that direct incentives such as subsidies to R&D activities would have the highest productivity impact on the Canadian economy, that an increase in subsidies to the users of R&D capital (output) would have a positive but smaller impact, and trade liberalization would have minimal effects on productivity growth via its impact on international R&D spillovers. Copyright © 2007 The Author; Journal compilation © 2007 Blackwell Publishing Ltd.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9361.2007.00381.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Development Economics.

Volume (Year): 11 (2007)
Issue (Month): 1 (02)
Pages: 187-203
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Handle: RePEc:bla:rdevec:v:11:y:2007:i:1:p:187-203

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669

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This page was last updated on 2009-12-19.

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