EconPapers    
Economics at your fingertips  
 

R&D Races and Spillovers between the EU and the US: Some Causal Evidence

Erdal Atukeren

No 05-105, KOF Working papers from KOF Swiss Economic Institute, ETH Zurich

Abstract: This paper examines the relationships between the R&D sector activities of the EU and the US using multivariate Granger-causality tests. The multivariate framework employed also allows us to make causal inferences about the effects of R&D activity on labour productivity in the home and foreign country. As a novelty, we employ the subset transfer function methodology to account for the possibility of "dry holes" in the effects of R&D efforts on economic activity. Our estimation results indicate that R&D activity in the EU is a direct Granger-cause of both R&D and labour productivity in the US, and the effects are negative. On the other hand, the EU reacts positively to increases in R&D productivity in the US. These findings are largely in line with the actual developments in the productivity differentials between the EU and the US and the patterns in their relative shares in the world market for high tech exports.

Keywords: R&D races; Productivity spillovers; Direct Granger-causality; EU's Lisbon targets; High tech exports (search for similar items in EconPapers)
Pages: 21 pages
Date: 2005-08
New Economics Papers: this item is included in nep-eec and nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.3929/ethz-a-005104832 (application/pdf)

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:kof:wpskof:05-105

Access Statistics for this paper

More papers in KOF Working papers from KOF Swiss Economic Institute, ETH Zurich Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2021-06-07
Handle: RePEc:kof:wpskof:05-105