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Scientific Research and Growth Volatility

Author

Listed:
  • Sam Tang

    (UWA Business School, The University of Western Australia)

Abstract

This article uncovers a strong link between scientific and engineering publications on the one hand, and growth volatility on the other: growth volatility is significantly lowered by a country’s ability to publish more scientific and engineering journal articles. This link is strongest among the high-income developed countries, where we find causality running from scientific research output to growth volatility. The evidence suggests that scientific research fuels technological progress and productivity growth, which support population increase, diversification, and stable economic growth. The key finding of this article is robust to various sensitivity checks and different estimators.

Suggested Citation

  • Sam Tang, 2008. "Scientific Research and Growth Volatility," Economics Discussion / Working Papers 08-11, The University of Western Australia, Department of Economics.
    • Handle: RePEc:uwa:wpaper:08-11
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    File URL: https://www.business.uwa.edu.au/school/disciplines/economics/?a=94261
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    References listed on IDEAS

    as
    1. David Croix & Davide Dottori, 2008. "Easter Island’s collapse: a tale of a population race," Journal of Economic Growth, Springer, vol. 13(1), pages 27-55, March.
    2. Jorg Dopke, 2004. "How Robust is the Empirical Link between Business-Cycle Volatility and Long-Run Growth in OECD Countries?," International Review of Applied Economics, Taylor & Francis Journals, vol. 18(1), pages 1-23.
    3. Ferreira da Silva, Gisele, 2002. "The impact of financial system development on business cycles volatility: cross-country evidence," Journal of Macroeconomics, Elsevier, vol. 24(2), pages 233-253, June.
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