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How Robust is the R&D-Productivity relationship? Evidence from OECD Countries

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  • Luintel, Kul B

    ()
    (Cardiff Business School)

  • Khan, Mosahid
  • Theodoridis, Konstantinos

    ()
    (Cardiff Business School)

Abstract

We examine the robustness of R&D and productivity relationship in a panel of 16 OECD countries. We control for fifteen productivity determinants predicted by different theoretical models. Following the advances in non-stationary panel data econometrics, we estimate four variants of thirteen specifications. All models appear co-integrated. Results are rigorously scrutinized through extensive bootstrap simulations and sensitivity checks. R&D and human capital emerge robust in all specifications making them universal drivers of productivity across nations. Most other determinants are also significant. Productivity relationships are heterogonous across countries depending on their accumulated stocks of knowledge and human capital.

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Bibliographic Info

Paper provided by Cardiff University, Cardiff Business School, Economics Section in its series Cardiff Economics Working Papers with number E2010/7.

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Length: 44 pages
Date of creation: Sep 2010
Date of revision:
Handle: RePEc:cdf:wpaper:2010/7

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Keywords: R&D Capital Stocks; Multifactor Productivity; Heterogeneity; Panel Cointegration; Bootstrap Simulations;

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Cited by:
  1. d'Artis Kancs & Boriss Siliverstovs, 2012. "R&D and Non-linear Productivity Growth of Heterogeneous Firms," LICOS Discussion Papers 32112, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  2. Antonio Cubel & Vicente Esteve & M. Teresa Sanchis & Juan A. Sanchis-Llopis, 2014. "The Effect Of Foreign And Domesctic Patents On Total Factor Productivity During The Second Half Of The 20th Century," Working Papers 1404, Department of Applied Economics II, Universidad de Valencia.

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