RELATIONSHIP BETWEEN PRIVATE AND PUBLIC INVESTMENT IN R&D: A DYNAMIC PANEL DATA ANALYSIS
RELATIONSHIP BETWEEN PRIVATE AND PUBLIC INVESTMENT IN R&D: A DYNAMIC PANEL DATA ANALYSIS
Author(s): Adnen CHOCKRI, Tarek SadraouiSubject(s): Business Economy / Management, Economic history, Economic development, Transformation Period (1990 - 2010)
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: R&D investment; Technology Spillovers; Complementarity; Economic growth; Dynamic Panel Data; Private investment; Public investment; R&D cooperation;
Summary/Abstract: This paper investigates the relationship between private and public investment in R&D, while taking into account the effect of several instruments policies such as subsidies and taxes. We design a new look of knowledge spillovers and R&D cooperation to explain the contribution of public and private R&D on growth. We propose a heterogeneous dynamic panel data model to consider the effect as well as endogenous. We also distinguish between the estimated long run and short run results. Our results based on a sample of 23 countries over the period 1992-2009 indicate that both public and private investment in R&D are complement. By establishing an endogenous growth model, the estimates indicate that public and private R&D depend on the host country’s human capital investment and that FDI is a more significant spillover channel than imports.
Journal: Review of Economic and Business Studies (REBS)
- Issue Year: 2011
- Issue No: 8
- Page Range: 197-212
- Page Count: 16
- Language: English
