IDEAS home Printed from https://ideas.repec.org/p/fau/wpaper/wp2011_19.html
   My bibliography  Save this paper

Research & Development and Long-Term Economic Growth: A Bayesian Model Averaging Analysis

Author

Abstract

We examine the effect of research and development (R&D) on long-term economic growth using the Bayesian model averaging (BMA) to deal rigorously with model uncertainty. Previous empirical studies investigated the effect of dozens of regressors on long-term growth, but they did not examine the effect of R&D due to data unavailability. We extend these studies by proposing to capture the R&D intensity by the number of Nobel prizes in science. Using our indicator, our estimates show that R&D exerts a positive effect on long-term growth with posterior inclusion probability of 0.25 using our preferred parameter and model priors.

Suggested Citation

  • Roman Horváth, 2011. "Research & Development and Long-Term Economic Growth: A Bayesian Model Averaging Analysis," Working Papers IES 2011/19, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Jun 2011.
  • Handle: RePEc:fau:wpaper:wp2011_19
    as

    Download full text from publisher

    File URL: http://ies.fsv.cuni.cz/default/file/download/id/16899
    Download Restriction: no

    References listed on IDEAS

    as
    1. Xavier Sala-I-Martin & Gernot Doppelhofer & Ronald I. Miller, 2004. "Determinants of Long-Term Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach," American Economic Review, American Economic Association, vol. 94(4), pages 813-835, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Balázs Égert, 2016. "Regulation, Institutions, and Productivity: New Macroeconomic Evidence from OECD Countries," American Economic Review, American Economic Association, vol. 106(5), pages 109-113, May.
    2. repec:eee:ecmode:v:66:y:2017:i:c:p:201-213 is not listed on IDEAS
    3. Begüm Erdil Şahin, 2015. "The Relationship Between R&D Expenditures and Economic Growth: Panel Data Analysis 1990-2013," EY International Congress on Economics II (EYC2015), November 5-6, 2015, Ankara, Turkey 207, Ekonomik Yaklasim Association.

    More about this item

    Keywords

    research and development; economic growth; Bayesian model averaging.;

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fau:wpaper:wp2011_19. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lenka Herrmannova). General contact details of provider: http://edirc.repec.org/data/icunicz.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.