Relationship Between Private and Public Investment in R&D: A Dynamic Panel Data Analysis

Tarek Sadraoui () and Adnen Chockri ()
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Adnen Chockri: Department of Quantitative Methods; University of Economics and Management, Sfax-Tunisia

Review of Economic and Business Studies, 2011, issue 8, 197-212

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.

Keywords: R&D investment; Technology Spillovers; Complementarity; Economic growth; Dynamic Panel Data; Private investment; Public investment; R&D cooperation (search for similar items in EconPapers)
JEL-codes: C33 D83 F42 O32 O33 (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:aic:revebs:y:2011:i:8:sadraouit

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