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How Robust is the R&D-Productivity relationship? Evidence from OECD Countries

  • Luintel, Kul B

    ()

    (Cardiff Business School)

  • Khan, Mosahid
  • Theodoridis, Konstantinos

    ()

    (Cardiff Business School)

We examine the robustness of R&D and productivity relationship in a panel of 16 OECD countries. We control for fifteen productivity determinants predicted by different theoretical models. Following the advances in non-stationary panel data econometrics, we estimate four variants of thirteen specifications. All models appear co-integrated. Results are rigorously scrutinized through extensive bootstrap simulations and sensitivity checks. R&D and human capital emerge robust in all specifications making them universal drivers of productivity across nations. Most other determinants are also significant. Productivity relationships are heterogonous across countries depending on their accumulated stocks of knowledge and human capital.

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Paper provided by Cardiff University, Cardiff Business School, Economics Section in its series Cardiff Economics Working Papers with number E2010/7.

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Length: 44 pages
Date of creation: Sep 2010
Date of revision:
Handle: RePEc:cdf:wpaper:2010/7
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