R&D expenditure and convergence: evidence for a panel of 16 OECD countries

Anna Tykhonenko () and F. Bonetto
Additional contact information
F. Bonetto: CEMAFI - Centre d'Etudes en Macroéconomie et Finance Internationale - UNS - Université Nice Sophia Antipolis (1965 - 2019)

Post-Print from HAL

Abstract: The current financial crisis is likely to reduce investment in Research and Development (R&D). Yet endogenous growth models underline the importance of the technological capital in the growth process: the accumulation of knowledge through R&D activities is one of the factors of self-sustained growth because it generates positive external effects. This paper aims to show the impact of the investment in R&D on the process of convergence between selected OECD countries. Using panel data over the period 1983-2004 for a sample of 16 countries, we test the convergence's hypothesis by the Bayesian iterative estimation method; a technological variable is introduced to control the differences in steady-state. Our empirical results validate the effect of expenditure in R&D in the catching-up process. Consequently, a decrease in these investments would be detrimental to growth.

Keywords: R&D Expenditure; Convergence; OECD Countries; Empirical Analysis; Bayesian Iterative Estimation Method (search for similar items in EconPapers)
Date: 2010-06-01
References: Add references at CitEc
Citations:

Published in Empirical Economic Letters, 2010, 9 (6), pp.635-644

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:hal:journl:halshs-00726313

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().