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Impact Analysis of Regional Knowledge Subsidy: a CGE Approach

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Listed:
  • G. Garau
  • P. Lecca

Abstract

In this paper we present a computable general equilibrium model for the region of Sardinia for the purpose of evaluating the capacity of R&D policies to affect the long run rate of growth. The model incorporates induced technical change and allow for external knowledge spillovers. We find that the cost of R&D policies may change according to the wage setting prevailing into the region. Furthermore, the capacity of such a policy to generate knowledge spillovers from the international and interregional trade are quite modest. Indeed, the capacity of the regional system to internalize the technological level embody in the imported good is partially offset by an increase in internal efficiency lowering the share of import but increasing competitiveness.

Suggested Citation

  • G. Garau & P. Lecca, 2008. "Impact Analysis of Regional Knowledge Subsidy: a CGE Approach," Working Paper CRENoS 200811, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    • Handle: RePEc:cns:cnscwp:200811
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    Citations

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    Cited by:

    1. Zuzana Křístková, 2012. "Impact of R&D Investment on Economic Growth of the Czech Republic - A Recursively Dynamic CGE Approach," Prague Economic Papers, Prague University of Economics and Business, vol. 2012(4), pages 412-433.
    2. Giorgio Garau & Patrizio Lecca, 2015. "The Impact of Regional R&D Subsidy in a Computable General Equilibrium Model," International Regional Science Review, , vol. 38(4), pages 319-357, October.
    3. repec:prg:jnlpep:v:2013:y:2013:i:4:id:432:p:412-433 is not listed on IDEAS
    4. Gomes, Alexandre & Perobelli, Fernando & Pio, João, 2016. "The Impact of expenditure on R & D within the Brazilian economy: an approach to Computable General Equilibrium," Conference papers 330169, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Zuzana Smeets Kristkova, 2011. "Impact of R&D investments on the economic growth of the Czech Republic – a recursively dynamic CGE approach," EcoMod2011 3137, EcoMod.
    6. Lecca, Patrizio & McGregor, Peter G. & Swales, J. Kim, 2013. "Forward-looking and myopic regional Computable General Equilibrium models: How significant is the distinction?," Economic Modelling, Elsevier, vol. 31(C), pages 160-176.

    More about this item

    Keywords

    regional modelling; induced technical change and r&d policies;

    JEL classification:

    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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