Modelling labour productivity and the role of research intensity in 129 years: evidence from a new dynamic instrumental variable estimation approach

Sakiru Adebola Solarin () and Mufutau Opeyemi Bello ()
Additional contact information
Sakiru Adebola Solarin: Faculty of Business, Multimedia University
Mufutau Opeyemi Bello: University of Ilorin

Quality & Quantity: International Journal of Methodology, 2024, vol. 58, issue 3, No 28, 2619-2646

Abstract: Abstract One of the areas of empirical research that has remained largely underexplored is the role of research intensity on labour productivity. To bridge this gap, this study investigates the impact of research intensity on labour productivity in 15 OECD countries using a new dynamic instrumental variable estimation approach while providing for financial development and education level as additional control variables for the 1890–2018 period. The results reveal that in most cases, research intensity, financial development, and level of education have positive impacts on labour productivity. In the model containing all the control variables and dummies, it is observed that for every 1 percentage point increase in research intensity, the labour productivity grows by 0.614 points. The results of the dummies suggest mixed evidence for the impact of World War I on labour productivity. The results further suggest that both World War II and the oil price crisis of the 1970s led to positive changes in labour productivity. For the purpose of robustness, we have also used a new Poisson pseudo maximum likelihood estimation approach to estimate the impact of research intensity on labour productivity, but the results are not materially different. The policy implications of the empirical results are detailed in the paper.

Keywords: Research intensity; Labour productivity; Dynamic instrumental variable estimation approach; Financial development; Level of education (search for similar items in EconPapers)
JEL-codes: C23 J00 O30 O47 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11135-023-01766-w Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:qualqt:v:58:y:2024:i:3:d:10.1007_s11135-023-01766-w

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11135

DOI: 10.1007/s11135-023-01766-w

Access Statistics for this article

Quality & Quantity: International Journal of Methodology is currently edited by Vittorio Capecchi

More articles in Quality & Quantity: International Journal of Methodology from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().