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The Impact Of Research, Development And Innovation Expenditures And Employment On Economic Growth. A Panel Data Analysis Throughout Romania’S Macro-Regions

Author

Listed:
  • MEȘTER Ioana

    (Department of Economics and Business, Doctoral School of Economics, Faculty of Economic Sciences, University of Oradea, Oradea, Romania)

  • GAVRILUȚ Darie

    (Department of Economics and Business, Faculty of Economic Sciences, University of Oradea, Oradea, Romania)

  • BEGU Andreea Oana

    (Department of Statistics and Econometrics, Faculty of Cybernetics, Statistics and Informatics, Bucharest University of Economic Studies, Romania)

Abstract

This present study examines the causality between core elements of an economy, namely economic growth, employment levels in R&D sector, and research, development, and innovation (RDI) spending throughout Romania’s macro-regions. RDI has a pivotal role when it comes to economic expansion, but its impact depends on several factors, including, but not limited to funding sources and regional disparities. While both public and private sources of investment in the field of RDI contribute to economic development, private funding tends to yield more efficient results, regardless of discussed timeframe, and thus its influence transcends local and regional economies and manages to develop cross-border relationships and dynamics. We have developed a panel data ARDL model for Romania, that reveals the significant impact on long and short run of research, development, and innovation spending on the economic growth as well as a long run impact of hirings in this sector on the economic growth.

Suggested Citation

  • MEȘTER Ioana & GAVRILUȚ Darie & BEGU Andreea Oana, 2025. "The Impact Of Research, Development And Innovation Expenditures And Employment On Economic Growth. A Panel Data Analysis Throughout Romania’S Macro-Regions," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 34(2), pages 93-104, December.
    • Handle: RePEc:ora:journl:v:34:y:2025:i:2:p:93-104
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    References listed on IDEAS

    as
    1. Dumitrescu, Elena-Ivona & Hurlin, Christophe, 2012. "Testing for Granger non-causality in heterogeneous panels," Economic Modelling, Elsevier, vol. 29(4), pages 1450-1460.
    2. Almus, Matthias & Czarnitzki, Dirk, 2003. "The Effects of Public R&D Subsidies on Firms' Innovation Activities: The Case of Eastern Germany," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(2), pages 226-236, April.
    3. Cooke, Philip & Gomez Uranga, Mikel & Etxebarria, Goio, 1997. "Regional innovation systems: Institutional and organisational dimensions," Research Policy, Elsevier, vol. 26(4-5), pages 475-491, December.
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    Keywords

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    JEL classification:

    • O0 - Economic Development, Innovation, Technological Change, and Growth - - General
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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