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Impact Analysis of Regional Knowledge Subsidy: a CGE Approach

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  • G. Garau

    ()

  • P. Lecca

Abstract

In this paper we present a computable general equilibrium model for the region of Sardinia for the purpose of evaluating the capacity of R&D policies to affect the long run rate of growth. The model incorporates induced technical change and allow for external knowledge spillovers. We find that the cost of R&D policies may change according to the wage setting prevailing into the region. Furthermore, the capacity of such a policy to generate knowledge spillovers from the international and interregional trade are quite modest. Indeed, the capacity of the regional system to internalize the technological level embody in the imported good is partially offset by an increase in internal efficiency lowering the share of import but increasing competitiveness.

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Bibliographic Info

Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200811.

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Date of creation: 2008
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Handle: RePEc:cns:cnscwp:200811

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Related research

Keywords: regional modelling; induced technical change and r&d policies;

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Cited by:
  1. Patrizio Lecca & Peter McGregor & Kim Swales, 2011. "Forward Looking and Myopic Regional Computable General Equilibrium Models. How Significant is the Distinction?," Working Papers 1133, University of Strathclyde Business School, Department of Economics.
  2. Zuzana Křístková, 2012. "Impact of R&D Investment on Economic Growth of the Czech Republic - A Recursively Dynamic CGE Approach," Prague Economic Papers, University of Economics, Prague, vol. 2012(4), pages 412-433.
  3. repec:prg:jnlpep:v:2013:y:2013:i:4:id:432:p:412-433 is not listed on IDEAS

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