EconPapers    
Economics at your fingertips  
 

The impact of domestic and foreign R&D on TFP in developing countries

Dierk Herzer

World Development, 2022, vol. 151, issue C

Abstract: There are few studies on the impact of domestic R&D on TFP in developing countries and even less on the impact of both domestic and foreign R&D on TFP in developing countries. Only one of these studies—a single-country study—also tests semi-endogenous and Schumpeterian R&D growth models against each other. All these studies focus on a relatively small number of developing countries, and none examines the extent to which there are differences in the effects of domestic R&D and international R&D spillovers on TFP between middle- and low-income countries. Using a large panel of countries, this study (i) tests the predictions of Schumpeterian theory against the predictions of semi-endogenous theory regarding the R&D-TFP relationship for developing economies, (ii) examines and compares the effects of domestic R&D and international R&D spillovers on TFP in developing countries, and (iii) investigates differences in the effects of domestic R&D and international R&D spillovers on TFP between middle- and low-income countries. It is found that an increase in the level (growth rate) of domestic R&D expenditures has a positive effect on the level (growth rate) of TFP, as semi-endogenous growth theory predicts, but this effect is greater in middle-income than in low-income countries. It is also found that domestic R&D has a much greater effect on TFP in developing countries than international R&D spillovers.

Keywords: Semi-endogenous growth models; Schumpeterian growth models; Domestic R&D; International R&D spillovers; TFP; Developing countries (search for similar items in EconPapers)
JEL-codes: F43 O11 O30 O47 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0305750X21003697
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:151:y:2022:i:c:s0305750x21003697

DOI: 10.1016/j.worlddev.2021.105754

Access Statistics for this article

World Development is currently edited by O. T. Coomes

More articles in World Development from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2022-07-31
Handle: RePEc:eee:wdevel:v:151:y:2022:i:c:s0305750x21003697