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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

  • Pop-Silaghi, Monica

    ()

    (Babeș-Bolyai University)

  • Jude, Cristina

    ()

    (Babeș-Bolyai University)

  • Alexa, Diana

    ()

    (Babeș-Bolyai University)

  • Litan, Cristian

    ()

    (Babeș-Bolyai University)

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.

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File URL: http://www.econ.ubbcluj.ro/~monica.pop/DP_04-2012.pdf
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Paper provided by School of Economics, Kingston University London in its series Economics Discussion Papers with number 2012-4.

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Length: 25 pages
Date of creation: Jul 2012
Date of revision:
Handle: RePEc:ris:kngedp:2012_004
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Kingston University London, School of Economics, Penrhyn Road, Kingston upon Thames, Surrey, KT1 2EE, UK

Web page: http://fass.kingston.ac.uk/departments/economics/

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