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Do business and public sector research and development expenditures contribute to economic growth in central and eastern European countries? A dynamic panel estimation

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  • Pop-Silaghi, Monica

    (Babeș-Bolyai University)

  • Jude, Cristina

    (Babeș-Bolyai University)

  • Alexa, Diana

    (Babeș-Bolyai University)

  • Litan, Cristian

    (Babeș-Bolyai University)

Abstract

This paper examines the impact of R&D expenditures in business and private sector on economic growth in Central and Eastern European Countries over the period 1998-2008. Using a Generalised Method of Moments estimator, we find that business R&D has a high and stable contribution to economic growth. Public R&D has no effect on growth but does not crowd out private activity. The paper also finds that part of the business R&D effect is accounted for by human capital. The results remain robust after considering macroeconomic control variables.

Suggested Citation

  • Pop-Silaghi, Monica & Jude, Cristina & Alexa, Diana & Litan, Cristian, 2012. "Do business and public sector research and development expenditures contribute to economic growth in central and eastern European countries? A dynamic panel estimation," Economics Discussion Papers 2012-4, School of Economics, Kingston University London.
    • Handle: RePEc:ris:kngedp:2012_004
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    More about this item

    Keywords

    R&D; human capital; economic growth; CEE; dynamic panel-GMM.;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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