The Relationship between Public Expenditures on Research and Development and Economic Growth - Example for the Czech Republic, Denmark and Slovakia
The Relationship between Public Expenditures on Research and Development and Economic Growth - Example for the Czech Republic, Denmark and Slovakia

Summary/Abstract: This article is devoted to the examination of public expenditures on research and development (R&D) in terms of volume, use, forms of aid and its aim is to verify the relationship between public R&D expenditures and economic growth in the Czech Republic, Denmark and Slovakia in the period 1995 – 2014. Empirical evidence is based primarily on data collected from the OECD database. The Johansen cointegration test is applied for analysing the long-term relationship and the Error Correction Model is added for short-term dynamics. The results of estimations have confirmed the positive long-term relationship between Gross Domestic Expenditure on R&D and economic growth in Denmark and Slovakia. Anyway, the testing of public expenditures on R&D by sectors has provided for a verified cointegration for one sector in all countries at least. Concretely, the long-term relationship has been proven for all sectors in Denmark, for government, private non-profit and higher education sectors in Slovakia and for the government sector in the Czech Republic.

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