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Do business and public sector research and development expenditures contribute to economic growth in central and eastern European countries? A dynamic panel estimation

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  • Pop-Silaghi, Monica

    () (Babeș-Bolyai University)

  • Jude, Cristina

    () (Babeș-Bolyai University)

  • Alexa, Diana

    () (Babeș-Bolyai University)

  • Litan, Cristian

    () (Babeș-Bolyai University)

Abstract

This paper examines the impact of R&D expenditures in business and private sector on economic growth in Central and Eastern European Countries over the period 1998-2008. Using a Generalised Method of Moments estimator, we find that business R&D has a high and stable contribution to economic growth. Public R&D has no effect on growth but does not crowd out private activity. The paper also finds that part of the business R&D effect is accounted for by human capital. The results remain robust after considering macroeconomic control variables.

Suggested Citation

  • Pop-Silaghi, Monica & Jude, Cristina & Alexa, Diana & Litan, Cristian, 2012. "Do business and public sector research and development expenditures contribute to economic growth in central and eastern European countries? A dynamic panel estimation," Economics Discussion Papers 2012-4, School of Economics, Kingston University London.
  • Handle: RePEc:ris:kngedp:2012_004
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    Cited by:

    1. Kelbesa Megersa & Danny Cassimon, 2015. "Public Debt, Economic Growth, and Public Sector Management in Developing Countries: Is There a Link?," Public Administration & Development, Blackwell Publishing, vol. 35(5), pages 329-346, December.
    2. Schasse, Ulrich & Belitz, Heike & Kladroba, Andreas & Stenke, Gero & Leidmann, Mark, 2016. "Forschung und Entwicklung in Wirtschaft und Staat," Studien zum deutschen Innovationssystem 2-2016, Expertenkommission Forschung und Innovation (EFI) - Commission of Experts for Research and Innovation, Berlin.
    3. repec:gam:jsusta:v:10:y:2018:i:7:p:2304-:d:156069 is not listed on IDEAS
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    6. Donny Tang, 2015. "Has the European Financial Integration Promoted the Economic Growth Among the New European Union Countries?," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 7(1).
    7. Bogdan Murarasu & Alina Bobasu, 2014. "Output Spillovers from Trade and Financial Linkages in Central and Eastern European Countries: A Panel Analysis," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 6(2), pages 081-096, December.
    8. Bengoa, Marta & Román, Valeriano Martínez-San & Pérez, Patricio, 2017. "Do R&D activities matter for productivity? A regional spatial approach assessing the role of human and social capital," Economic Modelling, Elsevier, vol. 60(C), pages 448-461.
    9. Marcin Grela & Aleksandra Majchrowska & Tomasz Michałek & Jakub Mućk & Agnieszka Stążka-Gawrysiak & Grzegorz Tchorek & Marcin Wagner, 2017. "Is Central and Eastern Europe converging towards the EU-15?," NBP Working Papers 264, Narodowy Bank Polski, Economic Research Department.
    10. Maru?a Pescu (Beca) & Camelia ?tefan (Baraba?), 2016. "The Effects of Gaps and Disparities on Economic Growth. A Study of 10 Former Socialist Countries from the CEE, Members of the EU," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 18(43), pages 592-592, August.
    11. Sajid Anwar & Sizhong Sun, 2014. "Entry of foreign firms and the R&D behaviour: a panel data study of domestic and foreign firms in China's manufacturing sector," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 23(8), pages 739-757, November.
    12. Mariya Neycheva, 2015. "Impact of Secondary and Tertiary Education on Economic Growth: a Co-integration Model for Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 82-106.
    13. Szalavetz Andrea, 2014. "Innovation in Hungary - The Impact of EU Accession and Integration into Global Value Chains," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 42(1), pages 40-59, June.
    14. Diana Alexa & Monica Pop-Silaghi & Laura Mariana Cismaṣ, 2016. "Total Factor Productivity, Health and Spatial Dependence in Some European Regions," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 58(3), pages 387-408, September.
    15. Stojkoski, Viktor & Kocarev, Ljupco, 2017. "The Relationship Between Growth and Economic Complexity: Evidence from Southeastern and Central Europe," MPRA Paper 77837, University Library of Munich, Germany, revised 2017.
    16. Daher, Hassan & Masih, A.Mansur M. & Ibrahim, Mansor H., 2014. "Islamic Banks’ Capital Buffers: Unique Risk Exposures and the Disciplining Effects of Charter Values," MPRA Paper 56947, University Library of Munich, Germany.

    More about this item

    Keywords

    R&D; human capital; economic growth; CEE; dynamic panel-GMM.;

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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