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Do business and public sector research and development expenditures contribute to economic growth in central and eastern European countries? A dynamic panel estimation

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Author Info

  • Pop-Silaghi, Monica

    ()
    (Babeș-Bolyai University)

  • Jude, Cristina

    ()
    (Babeș-Bolyai University)

  • Alexa, Diana

    ()
    (Babeș-Bolyai University)

  • Litan, Cristian

    ()
    (Babeș-Bolyai University)

Abstract

This paper examines the impact of R&D expenditures in business and private sector on economic growth in Central and Eastern European Countries over the period 1998-2008. Using a Generalised Method of Moments estimator, we find that business R&D has a high and stable contribution to economic growth. Public R&D has no effect on growth but does not crowd out private activity. The paper also finds that part of the business R&D effect is accounted for by human capital. The results remain robust after considering macroeconomic control variables.

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Bibliographic Info

Paper provided by School of Economics, Kingston University London in its series Economics Discussion Papers with number 2012-4.

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Length: 25 pages
Date of creation: Jul 2012
Date of revision:
Handle: RePEc:ris:kngedp:2012_004

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Postal: Kingston University London, School of Economics, Penrhyn Road, Kingston upon Thames, Surrey, KT1 2EE, UK
Web page: http://fass.kingston.ac.uk/schools/economics/
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Keywords: R&D; human capital; economic growth; CEE; dynamic panel-GMM.;

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