How R&D and tax incentives influence economic growth: Econometric study for the period between 1995 and 2008 of EU-15
AbstractSetting targets to increase the levels of R&D, a component that is present in the political and economic agendas of the European Member States with the promotion of active tax policies, suggests that it is possible for R&D to cause an impact on economic growth. This research work aims at understanding the influence of the evolution of R&D expenditures, as well as the influence of tax incentives on economic growth. For that, a panel data of 15 European countries, during the period between 1995 and 2008, was used. The econometric study confirms the foreseen importance, both in this study and in the literature, of the countries’ R&D efforts and their impact on economic growth. The positive effect of tax incentives on economic growth, combined with R&D levels, is highlighted and demonstrated, thus confirming a strategic orientation towards tax policies followed by the national institutions.
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Bibliographic InfoPaper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 442.
Length: 20 pages
Date of creation: Nov 2011
Date of revision:
R&D; tax incentives; economic growth; econometric analysis in panel data;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
This paper has been announced in the following NEP Reports:
- NEP-ACC-2011-11-28 (Accounting & Auditing)
- NEP-ALL-2011-11-28 (All new papers)
- NEP-EUR-2011-11-28 (Microeconomic European Issues)
- NEP-FDG-2011-11-28 (Financial Development & Growth)
- NEP-INO-2011-11-28 (Innovation)
- NEP-PBE-2011-11-28 (Public Economics)
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