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R&D expenditures and the role of government around the world

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  • Ricardo N.Bebczuk

Abstract

The goal of this paper is to conduct an empirical investigation on the macroeconomic determinants of research and development (R&D) expenditures and to assess the role of government in the light of recent developments brought about by the endogenous growth theory. The sample comprises 88 countries over the 1980s and 1990s. Our results are broadly consistent with the theoretical predictions, although some striking results are uncovered, namely: (i) trade openness has a negative effect on R&D, but this effect is mitigated as per capita GDP and the trade with OECD countries increase; (ii) investment in R&D is negatively associated to investment in physical capital; (iii) governments fund a higher share of R&D in countries suffering more severe market failures, but they do not compensate for variations in private R&D.

Suggested Citation

  • Ricardo N.Bebczuk, 2002. "R&D expenditures and the role of government around the world," Estudios de Economia, University of Chile, Department of Economics, vol. 29(1 Year 20), pages 109-121, June.
  • Handle: RePEc:udc:esteco:v:29:y:2002:i:1:p:109-121
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    File URL: http://www.econ.uchile.cl/uploads/publicacion/51217946-7b08-44ed-80bf-8bcc4ad53240.pdf
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    References listed on IDEAS

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    1. Arthur M. Diamond, 1999. "Does Federal Funding "Crowd In" Private Funding Of Science?," Contemporary Economic Policy, Western Economic Association International, vol. 17(4), pages 423-431, October.
    2. Douglas W. Diamond & Philip H. Dybvig, 2000. "Bank runs, deposit insurance, and liquidity," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Win, pages 14-23.
    3. Ricardo J. Caballero & Adam B. Jaffe, 1993. "How High are the Giants' Shoulders: An Empirical Assessment of Knowledge Spillovers and Creative Destruction in a Model of Economic Growth," NBER Chapters,in: NBER Macroeconomics Annual 1993, Volume 8, pages 15-86 National Bureau of Economic Research, Inc.
    4. Nathan Rosenberg, 2009. "Uncertainty and Technological Change," World Scientific Book Chapters,in: Studies On Science And The Innovation Process Selected Works of Nathan Rosenberg, chapter 8, pages 153-172 World Scientific Publishing Co. Pte. Ltd..
    5. Clarke, George, 2001. "How the quality of institutions affects technological deepening in developing countries," Policy Research Working Paper Series 2603, The World Bank.
    6. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Governance matters," Policy Research Working Paper Series 2196, The World Bank.
    7. Gene M. Grossman & Elhanan Helpman, 1994. "Endogenous Innovation in the Theory of Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 23-44, Winter.
    8. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
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    Cited by:

    1. Wang, Eric C., 2010. "Determinants of R&D investment: The Extreme-Bounds-Analysis approach applied to 26 OECD countries," Research Policy, Elsevier, vol. 39(1), pages 103-116, February.
    2. Kaies Samet, 2010. "The creative intelligence," Working paper serie RMT - Grenoble Ecole de Management hal-00512539, HAL.
    3. Roberto Alvarez & Claudio Bravo-Ortega & Dan Poniachik, 2015. "Empirical Evidence on R&D Targeting and Transitions," Working Papers wp402, University of Chile, Department of Economics.
    4. repec:ipg:wpaper:2014-362 is not listed on IDEAS

    More about this item

    Keywords

    Research and development.;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • E19 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Other

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