scholarly journals The Effects of Research and Development (R&D) Investments on Sustainable Economic Growth: Evidence from OECD Countries (1996-2015)

2018 ◽  
Vol 18 (1) ◽  
pp. 3-23 ◽  
Author(s):  
Şekip Yazgan ◽  
Ömer Yalçinkaya
Keyword(s):  
Economic Growth ◽  
Panel Data Analysis ◽  
Oecd Countries ◽  
Income Level ◽  
Factor Productivity ◽  
Income Levels ◽  
Growth Performances ◽  
Average Factor ◽  
Sustainable Economic Growth ◽  
D Investment

AbstractThis study is devoted to the empirical analysis by second generation panel data analysis of the effects of the R&D investment variables in different qualifications in OECD countries grouped as OECD-20 and OECD-9 based on the income levels of the economic growth for the period of 1996-2015. Within this context, the purpose of this study is to evaluate whether or not the economic growth performances of OECD-20 and OECD-9 countries have a sustainable structure that endogenizes the technological advancements and occurs by the increments in average factor productivity. At the end of the paper it is determined that all the R&D variables in different qualifications of the OECD-20 group have a higher income level in sample period and have positive and statistically significant effects on the economic growth. On the other hand, only the private sector, universities and the total R&D investments have positive and statistically significant effects on the economic growth of the OECD-9 group which has comparatively lower income level. However, it is specified that the size of the positive and statistically significant effects of the R&D investment variables in different qualifications is more than two times bigger in the OECD-20 group as opposed to the OECD-9 group. These results reveal that the economic performances of OECD-20 countries in the investigated period have a more substantial relation with the qualified and sustainable structure that endogenizes the technologic advancements and occurs by the increments in average factor productivity. All of this shows that the R&D investments also are substantially sufficient to change the long-term economic growth performances and income levels of the countries in OECD-20 and OECD-9 groups.

scholarly journals The Relationship between Labor Productivity and Economic Growth in OECD Countries

2017 ◽  
Vol 9 (5) ◽  
pp. 71 ◽  
Author(s):  
Suna Korkmaz ◽  
Oya Korkmaz
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Labor Productivity ◽  
Panel Data Analysis ◽  
Developed Countries ◽  
Oecd Countries ◽  
Factor Productivity ◽  
The Developed Countries ◽  
Partial Factor Productivity ◽  
The Relationship

In the course of globalization, the countries entered into an intense competition between each other. In order to achieve the competitive advantage, countries pay significant importance to the technological advancements. By improving the productivity, the technological innovations and developments allow the countries to make production at lower costs. The increase in factor productivities would enable higher levels of output in the economy. Since the factor productivity influences many other factors and the developed countries meet these criteria better than developing countries do, the factor productivities are higher in developed countries, when compared to those in developing countries. For this reason, in this study, the relationship between labor productivity, which is a partial factor productivity, and economic growth in seven OECD countries for the period between 2008 and 2014 by utilizing the panel data analysis method. According to the test results, we find a unidirectional causality relationship from economic growth to labor productivity.

scholarly journals The Relationship Between Public Expenditures, Total Factor Productivity and Economic Growth: A Panel Data Analysis

2021 ◽  
Author(s):  
Remzi Can Yılmaz ◽  
Ahmet Rutkay Ardoğan
Keyword(s):  
Economic Growth ◽  
Total Factor Productivity ◽  
Developing Economies ◽  
Panel Data Analysis ◽  
Statistical Significance ◽  
Data Availability ◽  
Public Expenditures ◽  
Annual Data ◽  
Factor Productivity ◽  
The Relationship

According to the economics literature, there are two main sources of economic growth. While the first of the resources is the accumulation of production factors, the other is the part of the output that cannot be explained by the amount of input used in production, in other words, the total factor productivity. The level of total factor productivity is measured according to how efficiently the inputs are used in the production process. In this study, the hypothesis that public spending affects real economic growth through total productivity is investigated. In the first stage, whether the changes in public expenditures affect the total factor productivity or not; if it does, to what extent and in what direction it has been tried to be revealed. In the second stage, the effect of total factor productivity on economic growth was examined and the statistical significance, direction and extent of the relationship between variables were investigated. Annual data were used in the study and the year range is 2000-2017. The sampling economies were selected according to data availability, and there are a total of 20 developed and developing economies. Research was conducted using multiple panel regression analysis. According to the findings, the relationship between public expenditures and total factor productivity is statistically significant. An increase in public expenditures reduces the total factor productivity. The relationship between total factor productivity and economic growth is statistically significant, and an increase in total factor productivity also increases economic growth. An increase in public expenditures affects economic growth negatively by reducing the total factor productivity.

THE VANISHING EFFECT OF FINANCE ON ECONOMIC DEVELOPMENT

2019 ◽  
pp. 1-43
Author(s):  
Klaus Gründler
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Financial Development ◽  
Productivity Growth ◽  
Oecd Countries ◽  
Growth Effect ◽  
Factor Productivity ◽  
Average Effect ◽  
Innovation Projects ◽  
New Ideas

This paper examines the mechanisms that determine the “vanishing effect of finance” on economic growth found in recent studies. Based on both current (171 countries, 1960–2014) and historical (21 OECD countries, 1870–2009) data, the results show that financial development promotes growth in poorer countries by increasing education and investment, and by decreasing fertility. The relevance of these transmission channels declines when countries become richer. The growth effect of the financial sector in high-income countries primarily depends on new ideas and potentials for innovation projects. Consequently, the major decline in factor productivity growth since the early 2000s has contributed to the reduction in the financial sector’s average effect on growth.

scholarly journals Adjusted Net Savings of CEE and Baltic Nations in the Context of Sustainable Economic Growth: A Panel Data Analysis

2020 ◽  
Vol 13 (10) ◽  
pp. 234 ◽  
Author(s):  
Batrancea Larissa ◽  
Rathnaswamy Malar Maran ◽  
Batrancea Ioan ◽  
Nichita Anca ◽  
Rus Mircea-Iosif ◽  
...  
Keyword(s):  
Economic Growth ◽  
Data Analysis ◽  
Panel Data ◽  
Panel Data Analysis ◽  
Green Economy ◽  
Soviet Bloc ◽  
Eastern European ◽  
Policy Changes ◽  
Sustainable Economic Growth ◽  
Adjusted Net Savings

The article investigates the contribution of adjusted net savings to sustainable economic growth for 10 Central and Eastern European and Baltic nations, which are former Soviet bloc nations known as transition economies, using panel data analysis for the period 2005–2016. Our results indicated that adjusted net savings impacted on the GDP across the 10 countries analyzed. Nevertheless, national authorities are called on to implement policy changes in these countries to achieve sustainable economic growth and make an efficient transition from a brown economy towards a green economy.

New Evidence on the Relationship Between Economic Freedom and Growth: A Panel Cointegration Analysis for The Case of OECD

2012 ◽  
Vol 12 (3) ◽  
pp. 1850263 ◽  
Author(s):  
Ekrem Erdem ◽  
Can Tansel Tugcu
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Total Factor Productivity ◽  
Economic Freedom ◽  
Global Financial Crisis ◽  
Oecd Countries ◽  
Cointegration Analysis ◽  
Factor Productivity ◽  
The Impact ◽  
The Relationship

The aim of this paper is to find a new answer to an old question “Is economic freedom good or not for economies?” which was refreshed after the Global Financial Crisis of 2008. For this purpose, the relationship between economic freedom and economic growth, and the relationship between economic freedom and total factor productivity in OECD countries were investigated by using panel data for the period of 1995-2009. Study employed the recently developed cointegration test by Westerlund (2007) and the estimation technique by Bai and Kao (2006) which account for cross-sectional dependence that is an important problem in the panel data studies. Although no significant relationship found between economic freedom and total factor productivity, cointegration analysis revealed that economic freedom matters for economic growth in OECD countries in the long-run, and estimation results showed that direction of the impact is negative.

scholarly journals Good governance and human development: Evidence form Indian States

2011 ◽  
Vol 1 (1) ◽  
pp. 1-8 ◽  
Author(s):  
Rudra P. Pradhan
Keyword(s):  
Economic Growth ◽  
Human Development ◽  
Development Process ◽  
Good Governance ◽  
Panel Data Analysis ◽  
Indian States ◽  
Daunting Task ◽  
The Status ◽  
Sustainable Economic Growth ◽  
The Impact

The paper explores the impact of good governance on human development in India during the last two decades. Using panel data analysis, it finds the evidence that good governance and past human development determines present human development in India. That means good governance can be considered as the policy variables through which we can obtain high economic growth and human development in the country. The paper accordingly suggests that with better institutional mechanism and good governance the country can put its development process in the higher ladder of growth and human development. The lack of same may affect the development process, particularly to achieve sustainable economic growth and human development. Hence governments should have aim to increase the status of good governance and can maintain the same with greater caution. This is not a daunting task, if there is adequate political will in the economy.

scholarly journals Innovation and institutional quality: Evidence from OECD countries

2019 ◽  
Vol 9 (3) ◽  
pp. 165-176
Author(s):  
Serap Baris
Keyword(s):  
Economic Growth ◽  
Data Analysis ◽  
Panel Data ◽  
Panel Data Analysis ◽  
Patent Application ◽  
Institutional Quality ◽  
Political Stability ◽  
Oecd Countries ◽  
Policy Makers ◽  
Governance Indicators

Focusing the effect of innovations on economic growth, the literature has not adequately cared about what determines the innovations or innovative capacity. However, policy makers and business leaders have accepted the need for creating platforms and institutions that promote innovative activities since it was accepted that innovations were the basic key to economic growth. This study focuses on the effect of institutions or institutional quality on the innovations. In this study where OECD countries have been selected as the sampling (1996–2015 period) and World Bank’s Worldwide Governance Indicators represent institutional quality while the number of patent application represents the innovation, the effect of institutional quality on the innovations has been examined through the methods of panel data analysis. Innovation is positively related to voice and accountability, political stability and rule of law while it is negatively related to control of corruption. Moreover, there has been no relationship determined between government effectiveness and regulatory quality and innovation. Findings of this study suggest that it is highly difficult to state what is the net effect of institutional quality on the innovations. Keywords: Governance, innovation, institutions, institutional quality, patent, panel data analysis.

The Effect of Health and Education Expenditures on Poverty

2019 ◽  
pp. 177-197
Author(s):  
Mahmut Unsal Sasmaz ◽  
Omer Faruk Ozturk ◽  
Yunus Emre Yayla
Keyword(s):  
Economic Growth ◽  
Data Analysis ◽  
Panel Data Analysis ◽  
Public Expenditures ◽  
Eastern European ◽  
Low Countries ◽  
Income Levels ◽  
Education Expenditures ◽  
Negative Effect ◽  
Eastern European Countries

Poverty is a phenomenon that influences and complicates the living conditions of individuals. Along with the poverty, individuals experience health problems, and educational and income levels of individuals may also be low. Countries are generally able to fight against poverty by increasing public expenditures and making some economic progresses. For that reason, analyzing the effect of health and education expenditures with a significant place in public expenditures and economic growth on poverty is highly important. In this chapter, the effect of health and education expenditures and economic growth on poverty in 2005 and 2016 period in eight Central and Eastern European countries has been analyzed using panel data analysis. As a result of the study, it has been determined that health and education expenditures and economic growth have a negative effect on poverty. In addition, a one-way causality from health and education expenditures to poverty and a two-way causality between economic growth and poverty have been detected.

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