Governmental Intervention and Its Impact on Growth, Economic Development, and Technology in OECD Countries

Arik Sadeh, Claudia Florina Radu, Cristina Feniser and Andrei Borşa
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Arik Sadeh: HIT, Holon Institute of Technology, Faculty of Technology Management, Holon 5810201, Israel
Claudia Florina Radu: Faculty of Economic Sciences, Informatics and Engineering, Vasile Goldiş Western University of Arad, 310025 Arad, Romania
Cristina Feniser: Department of Management and Economic Engineering, Technical University of Cluj Napoca, 28 Memorandumului St., 400114 Cluj-Napoca, Romania
Andrei Borşa: Department of Engineering, Faculty of Food Science and Technology, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 400372 Cluj-Napoca, Romania

Sustainability, 2020, vol. 13, issue 1, 1-30

Abstract: The governments’ intervention in the economy impacts technological performance and sustainability. This role has become even more critical due to the COVID-19 situation and in the context of the continuous increase in resource consumption, which requires finding alternative solutions. We provide a comprehensive literature review about the state’s economic functions, redistribution of resources in society, and the role of state intervention in sustainability-related issues, giving a full description of the opinions and concepts primarily of economists. We propose to study governments’ interventions in their economy using budgetary resources on public expenditure, highlighting the leading factors in government policies using a suggested intervention index. The state’s intervention policy’s stability is measured via the intervention index’s partial autocorrelation function over the years. We collected data from OECD data sets and conducted a descriptive statistical analysis followed by panel data analysis. Subsequently, two questions are explored about the state’s intervention and its technical performance and technology-related sustainability issues. Results show that economic strength positively affects the intervention. Expenditures on education may lead to better technological outcomes, unlike expenses on health. The tax burden inhibits innovation and technological progress, but total governmental revenues positively affect technological performance.

Keywords: government intervention; redistribution of sources; technological performance; public expenditures; sustainable-related technology; partial autocorrelation function (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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