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Research Effort and Economic Growth

Author

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  • Weshah Razzak

    (School of Economics and Finance, Massey University, Palmerston North)

Abstract

Total factor productivity growth (TFP) is positively related to the growth rate in effective research efforts. At the macro level, research effort is the nonlinear product of human capital and the number of people engaged in research activity. The rate of return on human capital is positive across the G7 countries. However, the rate of return on the number of researcher is negative in all countries except the U.S. thus; there is a decreasing return to scale in the production of new ideas.

Suggested Citation

  • Weshah Razzak, 2020. "Research Effort and Economic Growth," Discussion Papers 2002, School of Economics and Finance, Massey University, New Zealand.
    • Handle: RePEc:mas:dpaper:2002
    as

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    File URL: https://econfin.massey.ac.nz/school/publications/discuss/2020/DP2002.pdf
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    References listed on IDEAS

    as
    1. Elias Carayannis & David Campbell, 2011. "Open Innovation Diplomacy and a 21st Century Fractal Research, Education and Innovation (FREIE) Ecosystem: Building on the Quadruple and Quintuple Helix Innovation Concepts and the “Mode 3” Knowledge ," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 2(3), pages 327-372, September.
    2. Nicholas Bloom & Charles I. Jones & John Van Reenen & Michael Webb, 2020. "Are Ideas Getting Harder to Find?," American Economic Review, American Economic Association, vol. 110(4), pages 1104-1144, April.
    3. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    4. Charles I. Jones & Jihee Kim, 2018. "A Schumpeterian Model of Top Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 126(5), pages 1785-1826.
    5. Martin Feldstein, 2017. "Underestimating the Real Growth of GDP, Personal Income, and Productivity," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 145-164, Spring.
    6. Ufuk Akcigit & Qingmin Liu, 2016. "The Role Of Information In Innovation And Competition," Journal of the European Economic Association, European Economic Association, vol. 14(4), pages 828-870, August.
    7. Kuznets, Simon, 1973. "Modern Economic Growth: Findings and Reflections," American Economic Review, American Economic Association, vol. 63(3), pages 247-258, June.
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    More about this item

    Keywords

    TFP Growth; Research Efforts; Education; Human Capital; Useful Knowledge;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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