Importance of R&D expenditure for economic growth in selected CEE countries

DSpace Repository

Show simple item record Szarowská, Irena
dc.contributor.other Ekonomická fakulta cs 2018-12-06 2018-12-17T08:44:44Z 2018-12-17T08:44:44Z
dc.identifier.issn 1212-3609
dc.description.abstract The goal of the article is to quantify the effect of R&D expenditure on economic growth in selected Central and Eastern European countries. From a methodological perspective, the research is based on Dumitrescu and Hurlin causality and the dynamic panel regression methodology, based on adapted growth model. The empirical evidence is performed on unbalanced annual panel data of eight selected countries (Bulgaria, Czech Republic, Hungary, Latvia, Poland, Romania, Slovak Republic and Slovenia), during the period 1995-2016. The research confirms that there is a trend to combine direct and indirect public funding instruments. Because of limited financial resources, indirect support has become more important in recent years. Cash grants and tax deduction are the tools most often used for support and funding of R&D in the selected CEE countries. A dynamic panel analysis with fixed effects confirms a positive and statistically significant impact of R&D expenditure on economic growth. Government R&D expenditure is reported to be a key driver for economic performance followed by business R&D expenditure, a higher share of persons with tertiary education and/or employed in science and technology and country openness. On the contrary, investment and higher education R&D expenditure were found to have a positive but statistically insignificant impact. Hence, special care of policymakers should be given to investment mix. It is decisive to direct and support investment to growth-enhancing areas (e.g. infrastructure and communication, R&D, education and health care) and to improve the ratio between current and capital investment. Attention should also focus on higher education R&D support, and future development must be concentrate on its cooperation with business sector especially in the area of applied research. Finally, a crisis is reported to have a negative and statistically significant impact on economic growth. en
dc.format text
dc.format.extent 17 stran cs
dc.language.iso en
dc.publisher Technická Univerzita v Liberci cs
dc.publisher Technical university of Liberec, Czech Republic en
dc.relation.ispartof Afonso, O. (2016). R&D intensity, economic growth and firm-size growth: theory and practice. Applied Economics, 48(32), 2973-2993. cs
dc.relation.ispartof Arellano, M., & Bond, S. (1991). Some tests of specification for panel data. The Review of Economic Studies, 58(2), 277-297. cs
dc.relation.ispartof Baran, K. (2013). The Determinants of Economic Growth in Hungary, Poland, Slovakia and the Czech Republic during the Years 1995-2010. Equilibrium, Quarterly Journal of Economics and Economic Policy, 8(3), 7-26. cs
dc.relation.ispartof Barro, R. J., & Sala-i-Martin, X. (1995). Economic growth. New York: McGraw-Hill. cs
dc.relation.ispartof Becker, B. (2015). Public R&D policies and private R&D investment: a survey of the empirical evidence. Journal of Economic Surveys, 29(5), 917-942. cs
dc.relation.ispartof Berliant, M., & Fujita, M. (2011). The Dynamics of knowledge diversity and economic growth. Southern Economic Journal, 77(4), 856-884. cs
dc.relation.ispartof Bilas, V., Bosnjak, M., & Cizmic, T. (2016). Relationship between Research and Development and Economic Growth in the EU Countries. In 13th International Scientific Conference on Economic and Social Development (pp. 223-230). Varazdin: Varazdin Development & Entrepreneurship Agency. cs
dc.relation.ispartof Bilbao-Osorio, B., & Rodriguez-Pose, A. (2004). From R&D to innovation and economic growth in the EU. Growth and Change, 35(4), 434-455. cs
dc.relation.ispartof Breitung, J. (2000). The local power of some unit root tests for panel data. In B. H. Baltagi (Ed.), Advances in Econometrics, Volume 15: Nonstationary Panels, Panel Cointegration, and Dynamic Panels (pp. 161-178). Amsterdam: JAY Press. cs
dc.relation.ispartof Cincera, M., Cozzab, C., Tübkec, A., & Voigt, P. (2012). Doing R&D or not (in a crisis), that is the question. European Planning Studies, 20(9), 1525-1547. cs
dc.relation.ispartof David, P. A., Hall, B. H., & Toole, A. A. (2000). Is public R&D a complement or substitute for private R&D? A review of the econometric evidence. Research Policy, 29(4-5), 497-529. cs
dc.relation.ispartof Dougherty, C. (2007). Introduction to Econometrics. Oxford: Oxford University Press. cs
dc.relation.ispartof Dritsakis, N., & Stamatiou, P. (2016). Trade Openness and Economic Growth: A Panel Cointegration and Causality Analysis for the Newest EU Countries. Romanian Journal of Economic Forecasting, 19(59), 45-60. cs
dc.relation.ispartof Dumitrescu, E. I., & Hurlin, C. (2012). Testing for Granger non-causality in heterogeneous panels. Economic Modelling, 29(4), 1450-1460. cs
dc.relation.ispartof Ernst & Young. (2015). Worldwide R&D incentives reference guide 2014-15. London: EYGM Limited. cs
dc.relation.ispartof European Commission. (2014). Taking stock of the Europe 2020 strategy for smart, sustainable and inclusive growth, COM (2014) 130 final. Brussels: European Commission. cs
dc.relation.ispartof European Commission. (2013). Research and innovation performance in EU member states and associated countries. Luxembourg: Publications Office of the European Union. cs
dc.relation.ispartof Freimane, R., & Bāliņa, S. (2016). Research and Development Expenditures and Economic Growth in the EU: A Panel Data Analysis. Economics and Business, 29(1), 5-11. cs
dc.relation.ispartof Garland, G. H., & Allen, D. B. (1995). Returns on public and private R&D. In 3rd International Meeting of the Decision-Sciences-Institute on Competing in the Global Marketplace (pp.165-167). Atlanta: Decision Sciences Institute. cs
dc.relation.ispartof Gemmell, N., Kneller, R., & Sanz, I. (2015). The growth effects of tax rates in the OECD. Canadian Journal of Economics, 47(4), 1217-1255. cs
dc.relation.ispartof Grossman, G., & Helpman, E. (1991). Trade, knowledge spillovers, and growth. European Economic Review, 35(2-3), 517-526. cs
dc.relation.ispartof Guellec, D., & van Pottelsberghe, B. (2003). The impact of public R&D expenditure on business R&D. Economics of Innovation and New Technology, 12(3), 225-243. cs
dc.relation.ispartof Gumus, E., & Celikay, F. (2015). R&D Expenditure and Economic Growth: New Empirical Evidence. The Journal of Applied Economic Research, 9(3), 205-217. cs
dc.relation.ispartof Hall, B., & Van Reenen, J. (2000). How effective are fiscal incentives for R&D? A review of the evidence. Research Policy, 29(4–5), 449-469. cs
dc.relation.ispartof Hud, M., & Hussinger, K. (2015). The impact of R&D subsidies during the crisis. Research Policy, 44(10), 1844-1855. cs
dc.relation.ispartof Huňady, J., & Orviská, M. (2014). The Impact of Research and Development Expenditures on Innovation Performance and Economic Growth of the Country – the Empirical Evidence. CBU International Conference Proceedings, 2, 119-125. cs
dc.relation.ispartof Chvojka, P., & Zeman, K. (2000). Tendencies of the Central and East European countries development. Politická ekonomie, 48(6), 799-822. cs
dc.relation.ispartof Im, K. S., Pesaran, M. H., & Shin, Y. (2003). Testing for unit roots in heterogeneous panels. Journal of Econometrics, 115(1), 53-74. cs
dc.relation.ispartof Inekwe, J. N. (2015). The Contribution of R&D Expenditure to Economic Growth in Developing Economies. Social Indicators Research, 124(3), 727-745. cs
dc.relation.ispartof Jones, C. I. (1995). R&D-based models of economic growth. Journal of Political Economy, 103(4), 759-784. cs
dc.relation.ispartof Köhler, C., Laredo, P., & Rammer, C. (2012). The impact and effectiveness of fiscal incentives for R&D [Nesta Working Paper 12/01]. London: NESTA. Retrieved December 12, 2015, from cs
dc.relation.ispartof Kneller, R., Bleaney, M. F., & Gemmell, N. (1999). Fiscal policy and growth: evidence from OECD countries. Journal of Public Economics, 74(2), 171-190. cs
dc.relation.ispartof Kravtsova, V., & Radosevic, S. (2012). Are systems of innovation in Eastern Europe efficient? Economic Systems, 36(1), 109-126. cs
dc.relation.ispartof Levin, A., Lin, C. F., & Chu, C.-S. J. (2002). Unit root tests in panel data: Asymptotic and finite-sample properties. Journal of Econometrics, 108(1), 1-24. cs
dc.relation.ispartof Minniti, A., & Venturini, F. (2017). The long-run growth effects of R&D policy. Research Policy, 46(1), 316-326. cs
dc.relation.ispartof Moutinho, R., Au-Yong-Oliveira, M., Coelho, A., & Manso, J. P. (2015). Beyond the "Innovation's Black-Box": Translating R&D outlays into employment and economic growth. Socio-Economic Planning Sciences, 50, 45-58. cs
dc.relation.ispartof OECD. (2012). OECD science, technology and industry outlook 2012. Paris: OECD Publications Service. cs
dc.relation.ispartof OECD. (2015). OECD science, technology and industry scoreboard 2015: innovation for growth and society. Paris: OECD Publishing. cs
dc.relation.ispartof OECD. (2017). OECD Science, Technology and Industry Scoreboard 2017: The digital transformation. Paris: OECD Publishing. cs
dc.relation.ispartof Perez-Sebastian, F. (2007). Public support to innovation and imitation in a non-scale growth model. Journal of Economic Dynamics & Control, 31(12), 3791-3821. cs
dc.relation.ispartof Petrakos, G., Arvanitidis, P. (2008). Determinants of economic growth. Economic alternatives, 1, 11-30. cs
dc.relation.ispartof Pilinkiene, V. (2016). Trade Openness, Economic Growth and Competitiveness. The Case of the Central and Eastern European Countries. Engineering Economics, 27(2), 185-194. cs
dc.relation.ispartof Romer, P. M. (1986). Increasing Returns and Long-Run Growth. Journal of Political Economy, 94(5), 1002-1037. cs
dc.relation.ispartof Romer, P. M. (1990). Endogenous Technological Change. Journal of Political Economy, 98(5), 71-102. cs
dc.relation.ispartof Silaghi, M. P., & Alexa, D. (2015). Sources of growth: Evidence from ten central and eastern European countries during 1993-2008. Panoeconomicus, 62(5), 643-661. cs
dc.relation.ispartof Silaghi, M. P., Alexa, D., Jude, C., & Litan, C. (2014). Do business and public sector research and development expenditures contribute to economic growth in Central and Eastern European Countries? A dynamic panel estimation. Economic Modelling, 36, 108-119. cs
dc.relation.ispartof Simionescu, M., Lazányi, K., Sopková, G., Dobeš, K., & Balcerzak, A. P. (2017). Determinants of Economic Growth in V4 Countries and Romania. Journal of Competitiveness, 9(1), 103-116. cs
dc.relation.ispartof Sokolov-Mladenovic, S., Cvetanovic, S., & Mladenovic, I. (2016). R&D expenditure and economic growth: EU28 evidence for the period 2002-2012. Economic Research-Ekonomska Istrazivanja, 29(1), 1005-1020. cs
dc.relation.ispartof Solow, R. (1956). A Contribution to the Theory of Economic Growth. The Quarterly Journal of Economics, 70(1), 65-94. cs
dc.relation.ispartof Sylwester, K. (2001). R&D and economic growth. Knowledge, Technology & Policy, 13(4), 71-84. cs
dc.relation.ispartof Szarowská, I. (2017). Does public R&D expenditure matter for economic growth? GMM approach. Journal of International Studies, 10(2), 90-103. cs
dc.relation.ispartof Szarowská, I. (2016). Impact of Public R&D Expenditure on Economic Growth in Selected EU Countries. In 9th International Scientific Conference „Business and Management 2016“. Vilnius: VGTU Press. cs
dc.relation.ispartof Verbeek, M. (2012). A guide to modern econometrics (4th ed.). New York: John Wiley & Sons cs
dc.relation.ispartof Economics and Management en
dc.rights CC BY-NC
dc.subject research and development en
dc.subject economic growth en
dc.subject public expenditure en
dc.subject Dumitrescu and Hurlin causality en
dc.subject dynamic panel regression en
dc.subject.classification O38
dc.subject.classification O47
dc.subject.classification H50
dc.subject.classification C33
dc.title Importance of R&D expenditure for economic growth in selected CEE countries en
dc.type Article en
dc.publisher.abbreviation TUL
dc.relation.isrefereed true
dc.identifier.doi 10.15240/tul/001/2018-4-008
dc.identifier.eissn 2336-5604
local.relation.volume 21
local.relation.issue 4
local.relation.abbreviation E+M cs
local.relation.abbreviation E&M en
local.faculty Faculty of Economics
local.citation.spage 108
local.citation.epage 124
local.access open
local.fulltext yes
local.filename EM_4_2018_08
dc.identifier.orcid 0000-0002-5197-6455 Szarowská, Irena

Files in this item

This item appears in the following Collection(s)

Show simple item record

Search DSpace

Advanced Search


My Account