The Effect of Public and Business R&D Capital on Productivity: Evidence from five regional countries of the Eurozone.


Proceedings of the 2nd  Panhellenic Scientific Conference with International Participation “Greece-Europe 2020: Education, Lifelong Learning, Research, New Technologies, Innovation and Economy”, Lamia, 28,29,30 September 2018
Published: Oct 15, 2019
Keywords:
Research & Development Productivity Eurozone
Παναγιώτης Πέγκας
Χρήστος Σταϊκούρας
Κωνσταντίνος Τσαμαδιάς
Abstract

This study empirically investigates the impact of public and business capital on research and development (R&D) on Total Factor Productivity (TFP) in a group of five Eurozone countries during the period 1995-2015. Panel data analysis shows that there is a cointegration relationship between TFP and public and business capital in R&D. The results of the empirical analysis show that, in the long run, public and business capital in R&D had a positive and statistically significant impact on TFP. The impact of public R&D capital was higher, compared to the impact of business R&D capital. Also, the results show that there is a bidirectional long-run Granger causality relationship between the examined variables. In conclusion, the results verify the theory, support policies to promote public and especially business R&D for the five peripheral countries of the Eurozone.

Article Details
  • Section
  • Εισηγήσεις