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Heterogeneous effect of high-tech industrial R&D spending on economic growth

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  • Wang, David Han-Min
  • Yu, Tiffany Hui-Kuang
  • Liu, Hong-Quan
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    Abstract

    Empirical evidence has suggested that R&D investment is positively related to economic growth. This paper extends prior research by further examining the heterogeneous effects of R&D expenditures in the high-tech sector on economic growth. This study adopts a quantile regression approach to explore the marginal effect of R&D expenditures in the high-tech sector across different quantiles of the conditional GDP distribution for 23 OECD countries and Taiwan during 1991–2006. Empirical evidences show that the impacts of R&D expenditures in the high-tech sector are heterogeneous across levels of per capita income. High-tech industrial R&D spending has a strong positive effect on GDP per capita at the highest quantile of the distribution. However, all sectors' R&D spending relative to GDP is subject to significant negative returns only when considering the middle income countries. The study provides a more comprehensive understanding of the correlation between R&D investment and economic growth.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Business Research.

    Volume (Year): 66 (2013)
    Issue (Month): 10 ()
    Pages: 1990-1993

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    Handle: RePEc:eee:jbrese:v:66:y:2013:i:10:p:1990-1993

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    Web page: http://www.elsevier.com/locate/jbusres

    Related research

    Keywords: Economic growth; High-tech industry; Quantile regression; R&D investment;

    References

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