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Research Effort and Economic Growth

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  • Weshah Razzak

    (School of Economics and Finance, Massey University, Palmerston North)

Abstract

Total factor productivity growth (TFP) is positively related to the growth rate in effective research efforts. At the macro level, research effort is the nonlinear product of human capital and the number of people engaged in research activity. The rate of return on human capital is positive across the G7 countries. However, the rate of return on the number of researcher is negative in all countries except the U.S. thus; there is a decreasing return to scale in the production of new ideas.

Suggested Citation

  • Weshah Razzak, 2020. "Research Effort and Economic Growth," Discussion Papers 2002, School of Economics and Finance, Massey University, New Zealand.
    • Handle: RePEc:mas:dpaper:2002
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    File URL: https://econfin.massey.ac.nz/school/publications/discuss/2020/DP2002.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    TFP Growth; Research Efforts; Education; Human Capital; Useful Knowledge;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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