Productivity and Economic Growth in the European Union: Impact of Investment in Research and Development

Nekrep Andreja (), Strašek Sebastjan () and Boršič Darja ()
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Nekrep Andreja: PhD student at the Faculty of Economics and Business, University of Maribor, Maribor, Slovenia
Strašek Sebastjan: University of Maribor, Faculty of Economics and Business, Maribor, Slovenia
Boršič Darja: University of Maribor, Faculty of Economics and Business, Maribor, Slovenia

Naše gospodarstvo/Our economy, 2018, vol. 64, issue 1, 18-27

Abstract: This paper focuses on investment in research and development as a factor of labour productivity and economic growth. Our analysis confirms the link between expenditure for research and development (expressed in % of GDP) and labour productivity (expressed in the number of hours worked) based on selected data for EU Member States in the period 1995-2013. A causal link between variables of the concave parabola was confirmed, and the value of expenditure for research and development (2.85% of EU GDP) maximising productivity (per hour of work) was determined based on the examined data. In accordance with these findings, EU’s target of reaching 3% of GDP spent on research and development to be achieved by 2020 seems in support of reaching maximum productivity in the EU.

Keywords: investment in research and development; productivity; economic growth; correlation; panel analysis (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:vrs:ngooec:v:64:y:2018:i:1:p:18-27:n:3

DOI: 10.2478/ngoe-2018-0003

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