R&D expenditures and the role of government around the world
AbstractThe goal of this paper is to conduct an empirical investigation on the macroeconomic determinants of research and development (R&D) expenditures and to assess the role of government in the light of recent developments brought about by the endogenous growth theory. The sample comprises 88 countries over the 1980s and 1990s. Our results are broadly consistent with the theoretical predictions, although some striking results are uncovered, namely: (i) trade openness has a negative effect on R&D, but this effect is mitigated as per capita GDP and the trade with OECD countries increase; (ii) investment in R&D is negatively associated to investment in physical capital; (iii) governments fund a higher share of R&D in countries suffering more severe market failures, but they do not compensate for variations in private R&D.
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Bibliographic InfoArticle provided by University of Chile, Department of Economics in its journal Estudios de Economia.
Volume (Year): 29 (2002)
Issue (Month): 1 Year 2002 (June)
Research and development.;
Find related papers by JEL classification:
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- E19 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Other
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