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Productivity and Economic Growth in the European Union: Impact of Investment in Research and Development

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  • Nekrep Andreja

    (PhD student at the Faculty of Economics and Business, University of Maribor, Maribor, Slovenia)

  • Strašek Sebastjan

    (University of Maribor, Faculty of Economics and Business, Maribor, Slovenia)

  • Boršič Darja

    (University of Maribor, Faculty of Economics and Business, Maribor, Slovenia)

Abstract

This paper focuses on investment in research and development as a factor of labour productivity and economic growth. Our analysis confirms the link between expenditure for research and development (expressed in % of GDP) and labour productivity (expressed in the number of hours worked) based on selected data for EU Member States in the period 1995-2013. A causal link between variables of the concave parabola was confirmed, and the value of expenditure for research and development (2.85% of EU GDP) maximising productivity (per hour of work) was determined based on the examined data. In accordance with these findings, EU’s target of reaching 3% of GDP spent on research and development to be achieved by 2020 seems in support of reaching maximum productivity in the EU.

Suggested Citation

  • Nekrep Andreja & Strašek Sebastjan & Boršič Darja, 2018. "Productivity and Economic Growth in the European Union: Impact of Investment in Research and Development," Naše gospodarstvo/Our economy, Sciendo, vol. 64(1), pages 18-27, March.
    • Handle: RePEc:vrs:ngooec:v:64:y:2018:i:1:p:18-27:n:3
    DOI: 10.2478/ngoe-2018-0003
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    References listed on IDEAS

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    Cited by:

    1. POP Andrada, 2020. "Eu Funding €“ A Positive Impact On Gdp?," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 89-98, July.

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