 The impact of research and development on total factor productivity in South Africa: an application of autoregressive distributed lag model approachTshepo Sekaiwa and Andrew Maredza () Global Business and Economics Review, 2018, vol. 20, issue 4, 453-484 Abstract: This study analyses the impact of research and development (R%D) on total factor productivity (TFP) in South Africa from 1970 to 2013. The study tests the Schumpeterian theory of growth which suggests that TFP growth results from interalia R%D. The study uses autoregressive distributed lag (ARDL) procedure to study TFP impact of R%D investment in South Africa. To take into account the changing structure of South African economy, the entire sample (1970-2013) and two sub-samples: 1970-1994 and 1990-2013 capturing resource-based and knowledge-based South Africa respectively are estimated. The ARDL test results revealed that cointegration exists between TFP and R%D for all the samples; implying that domestic and foreign R%D played a positive role on TFP growth of South Africa. Based on the results, the South African policy makers are encouraged to use policy instruments to improve R%D investment, particularly domestic R%D to achieve higher TFP growth. Keywords: total factor productivity; TFP; research and development; R%D; Schumpeterian growth theory; South Africa; autoregressive distributed lag; ARDL. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:gbusec:v:20:y:2018:i:4:p:453-484 Access Statistics for this article More articles in Global Business and Economics Review from Inderscience Enterprises Ltd |
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