Scientific Papers

JOURNAL OF INTERNATIONAL STUDIES


© CSR, 2008-2013
ISSN: 2306-3483 (Online), 2071-8330 (Print)



Directory of Open Access Journals (DOAJ)


Strike Plagiarism

Partners

Does public R&D expenditure matter for economic growth?

Vol. 10, No 2, 2017

 

Irena Szarowská

 

School of Business Administration, Silesian University,
Karviná, Czech Republic
Email: szarowska@opf.slu.cz

 

 

Does public R&D expenditure matter for economic growth? GMM approach

 

 

 

Abstract. The aim of the paper is to quantify the impact of public research and development (R&D) expenditure on economic growth. The empirical evidence focuses on the 20 selected EU member states in the period of 1995-2013. The research is based on a dynamic panel regression model (Generalized Method of Moments). The results confirm positive and statistically significant impact of government R&D expenditure, which is the main driver for economic growth during the analysed period. Contrary, business expenditure on the same is found to be insignificant. Traditional growth variables (higher share of qualified human resources and higher intensity of investments) report the positive effects, although in the case of investments – only partial one. The significance for R&D coefficient remains robust to different sub-periods.

 

Received: May, 2016

1st Revision: January, 2017

Accepted: May, 2017

 

DOI: 10.14254/2071-8330.2017/10-2/6

 

JEL Classification:O38, H25, F63 

Keywords: research and development, economic growth, direct funding, incentives, GMM