How Robust is the R&D-Productivity relationship? Evidence from OECD Countries

Kul Luintel (), Mosahid Khan and Konstantinos Theodoridis

No E2010/7, Cardiff Economics Working Papers from Cardiff University, Cardiff Business School, Economics Section

Abstract: We examine the robustness of R&D and productivity relationship in a panel of 16 OECD countries. We control for fifteen productivity determinants predicted by different theoretical models. Following the advances in non-stationary panel data econometrics, we estimate four variants of thirteen specifications. All models appear co-integrated. Results are rigorously scrutinized through extensive bootstrap simulations and sensitivity checks. R&D and human capital emerge robust in all specifications making them universal drivers of productivity across nations. Most other determinants are also significant. Productivity relationships are heterogonous across countries depending on their accumulated stocks of knowledge and human capital.

Keywords: R&D Capital Stocks; Multifactor Productivity; Heterogeneity; Panel Cointegration; Bootstrap Simulations (search for similar items in EconPapers)
JEL-codes: C15 F12 F2 O3 O4 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2010-09
New Economics Papers: this item is included in nep-eff and nep-ino
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Citations: View citations in EconPapers (7)

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