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R&D and Productivity: A Two Way Avenue?

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  • Bravo-Ortega, Claudio
  • García Marín, Álvaro

Abstract

Summary Most of the empirical studies assessing the R&D-productivity relationship at the country level fail to consider the possible simultaneity of these variables. Using a 65-country panel for the period between 1965 and 2005, this paper studies the relationship between R&D and productivity using several R&D indicators. We establish that per capita R&D expenditure is strongly exogenous to productivity. This result allows us to develop a further argument that demonstrates the high social returns to R&D spending. Our estimates also indicate that a 10% increase in R&D per capita generates an average increase of about 1.6% in the long-run TFP.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 39 (2011)
Issue (Month): 7 (July)
Pages: 1090-1107

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Handle: RePEc:eee:wdevel:v:39:y:2011:i:7:p:1090-1107

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

Related research

Keywords: innovation productivity endogeneity economic growth country panel;

References

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Citations

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Cited by:
  1. Okey K. N. Mawussé, 2013. "Institutions and scientific research in Africa," Economics Bulletin, AccessEcon, vol. 33(2), pages 1487-1503.
  2. Claudio Bravo-Ortega & Jose Miguel Benavente & Álvaro González, 2013. "Innovation, Exports and Productivity: Learning and Self selection in Chile," Working Papers wp371, University of Chile, Department of Economics.
  3. Heike Belitz & Florian Mölders, 2013. "International Knowledge Spillovers through High-Tech Imports and R&D of Foreign-Owned Firms," Discussion Papers of DIW Berlin 1276, DIW Berlin, German Institute for Economic Research.
  4. Bettina Becker, 2013. "The Determinants of R&D Investment: A Survey of the Empirical Research," Discussion Paper Series 2013_09, Department of Economics, Loughborough University, revised Sep 2013.

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