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Considerations Regarding The Influence Of The External Sector On R&D Employment €“ Evidence From Romania

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  • Florentina IVANOV

Abstract

Theoretical models analysing the globalisation effects suggest that knowledge transfer fosters the combination of foreign expertise with domestic knowledge, stimulating development and resulting in new products and strategies. An open economy will therefore have an increased research and development (R&D) activity. This article will test this hypothesis on recent data from Romania. More precisely, we will test if the level of globalisation of the Romanian macroeconomic regions has a significant impact over the R&D activity of the regions. In selecting the estimators for the level of globalisation, we concentrated on the ones acting like channels for information and competencies transfer: foreign direct investments (FDI) for the business sector, the number of students and teachers enrolled in exchange programs for the government sector and the rate of the population using internet for the private sector. The estimator for the level of R&D activity is the total number of employees activating in regional R&D activities. The model used for analysing the relationship between the variables is regression with panel data and time fixed effect. The number of R&D employees is the dependent variable and the FDI, mobility and internet access are the independent variables. The data refers to the Romanian NUTS 2 regions during the period 2008-2012. The results of both simple linear regression with robust estimation and time fixed effects suggest a significant positive relationship between the estimators used and the number of jobs in R&D sector.

Suggested Citation

  • Florentina IVANOV, 2014. "Considerations Regarding The Influence Of The External Sector On R&D Employment €“ Evidence From Romania," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 8(1), pages 755-762, November.
    • Handle: RePEc:rom:mancon:v:8:y:2014:i:1:p:755-762
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    References listed on IDEAS

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    1. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, April.
    2. Larisa STĂNILĂ & Mădălina ANDREICA & Amalia CRISTESCU, 2013. "Employment in the EU countries: a panel data analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(578)), pages 87-102, January.
    3. repec:agr:journl:v:1(578):y:2013:i:1(578):p:87-102 is not listed on IDEAS
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