R&D expenditures by field of science and GDP: Which causes which in Canada?
DOI:
https://doi.org/10.17811/ebl.8.1.2019.31-40Resumen
This paper attempts to reveal the relationship between GDP per capita and R&D expenditure per capita, R&D expenditure per capita on natural sciences and engineering, and R&D expenditure per capita on social sciences and humanities for Canada. Based on data from 1981 to 2014, bootstrap causality test proposed by Hacker and Hatemi-J (2006) show that there is a unidirectional causality from GDP per capita to R&D expenditure per capita, and a unidirectional causality from GDP per capita to R&D expenditure per capita on natural sciences and engineering. However, no causal relationship is observed between R&D expenditure per capita on social sciences and humanities and GDP per capita. These results may point an indirect relationship between the variables or the validity of R&D paradox and the European paradox for Canada.Citas
Arrow, K. J. (1962) The Economic Implications of Learning by Doing, The review of economic studies, 29(3), 155-173.
Bozkurt, C. (2015) R&D Expenditures and Economic Growth Relationship in Turkey, International Journal of Economics and Financial Issues, 5(1), 188.
Çetin, D., and Doyar, B. V. (2015) Effect of R&D Expenditures on Value Added in OECD Countries, In 17th International Symposium on Econometrics, Operations Research and Statistics, 11-12.
Çetin, M. (2013) The Hypothesis of Innovation-Based Economic Growth: A Causal Relationship, International Journal of Economic and Administrative Studies, (11), 1-16.
Dickey, D. A. and Fuller, W. A. (1981) Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root, Econometrica, 49(4), 1057-1072. doi: 10.2307/1912517.
Granger, C. W. J. (1969) Investigating Causal Relations by Econometric Models and Cross-Spectral Methods, Econometrica, 37(3), 424-438. doi: 10.2307/1912791.
Granger, C. W., and Newbold, P. (1974) Spurious regressions in econometrics, Journal of econometrics, 2(2), 111-120. doi: 10.1016/0304-4076(74)90034-7.
Güloğlu, B., and Tekin, R. B. (2012) A Panel Causality Analysis of the Relationship Among Research and Development, Innovation, and Economic Growth in High-Income OECD Countries, Eurasian Economic Review, 2(1), 32-47. doi: 10.14208/BF03353831.
Hacker, R. S. and Hatemi-J, A. (2005) A test for multivariate ARCH effects, Applied Economics Letters, 12(7), 411-417. doi: 10.1080/13504850500092129.
Hacker, R. S. and Hatemi-J, A. (2006) Tests for Causality Between Integrated Variables Using Asymptotic and Bootstrap Distributions: Theory and Application, Applied Economics, 38, 1489-1500. doi: 10.1080/00036840500405763.
Hacker, R. S. and Hatemi-J, A. (2008) Optimal Lag Length Choice in the Stable and Unstable VAR Models under Situations of Homoscedasticity and ARCH, Journal of Applied Statistics, 35(6), 601-615. doi: 10.1080/02664760801920473.
Hacker, R. S. and Hatemi-J, A. (2009a) HHtest: GAUSS Module to Implement Bootstrap Test for Causality with Leverage Adjustments, Statistical Software Components G00005, Boston College Department of Economics.
Hacker, R. S. and Hatemi-J, A. (2009b) LagOrder: GAUSS module to determine the optimal lag order in the VAR model based on Information Criteria, Statistical Software Components G00008, Boston College Department of Economics.
Hacker, R. S. and Hatemi-J, A. (2009c) MV-ARCH: GAUSS module to implement the multivariate ARCH test, Statistical Software Components G00009, Boston College Department of Economics.
Hanel, P. (2000) R&D, Interindustry and International Technology Spillovers and The Total Factor Productivity Growth of Manufacturing Industries in Canada, 1974-1989, Economic Systems Research, 12(3), 345-361. doi: 10.1080/09535310050120925.
Hannan, E. J. and Quinn, B. G. (1979) The determination of the order of an autoregression, Journal of the Royal Statistical Society. Series B (Methodological), 190-195.
Hatemi-J, A. (2003) A New Method to Choose Optimal Lag Order in Stable and Unstable VAR Models, Applied Economics Letters, 10(3), 135-137. doi: 10.1080/1350485022000041050.
Hatemi-J, A. (2008) Forecasting Properties of a New Method to Determine Optimal Lag Order in Stable and Unstable VAR models, Applied Economics Letters, 15(4), 239-243. doi: 10.1080/13504850500461613.
Lucas Jr, R. E. (1988) On the mechanics of economic development, Journal of monetary economics, 22(1), 3-42. doi: 10.1016/0304-3932(88)90168-7.
Maradana, R. P., Pradhan, R. P., Dash, S., Gaurav, K., Jayakumar, M. and Chatterjee, D. (2017) Does Innovation Promote Economic Growth? Evidence from European Countries, Journal of Innovation and Entrepreneurship, 6: 1. doi: 10.1186/s13731-016-0061-9.
OECD (2018) OECD Statistics. (accessed 25 May, 2018) http://stats.oecd.org/.
Peng, L. (2010) Study on Relationship between R&D Expenditure and Economic Growth of China, In Proceedings of the 7th International Conference on Innovation & Management, 1725-1728.
Phillips, P. C. B. and Perron, P. (1988) Testing for a Unit Root in Time Series Regression, Biometrika, 75(2), 335-346. doi: 10.2307/2336182.
Romer, P. M. (1990) Endogenous Technological Change, Journal of Political Economy, 98(5, Part 2), 71-102. doi: 10.1086/261725.
Sadraoui, T., Ali, T. B., and Deguachi, B. (2014) Economic Growth and International R&D Cooperation: A Panel Granger Causality Analysis, International Journal of Econometrics and Financial Management, 2(1), 7-21. doi: 10.12691/ijefm-2-1-2.
Schwarz, G. (1978) Estimating the Dimension of a Model, The Annals of Statistics, 6(2), 461-464.
Sims, C.A., Stock, J. H. and Watson, M. W. (1990) Inference in Linear Time Series Models with Some Unit Roots, Econometrica, 58(1), 113-144. doi: 10.2307/2938337.
Solow, R. M. (1956) A Contribution to The Theory of Economic Growth, The quarterly journal of economics, 70(1), 65-94. doi: 10.2307/1884513.
Swan, T. W. (1956) Economic Growth and Capital Accumulation, Economic Record, 32(2), 334-361. doi: 10.1111/j.1475-4932.1956.tb00434.x.
Sylwester, K. (2001) R&D and economic growth, Knowledge, Technology & Policy, 13(4), 71-84. doi: 10.1007/BF02693991.
Toda, H.Y. and Yamamoto, Y. (1995) Statistical Inference in Vector Autoregressions with Possibly Integrated Processes, Journal of Econometrics, 66, 225-250. doi: 10.1016/0304-4076(94)01616-8.
Tuna, K., Kayacan, E. and Bektaş, H. (2015) The Relationship Between Research & Development Expenditures and Economic Growth: The case of Turkey, Procedia-Social and Behavioral Sciences, 195, 501-507. doi: 10.1016/j.sbspro.2015.06.255.
Ülkü, H. (2004) R&D, innovation, and Economic Growth: An Empirical Analysis (No. 4-185). International Monetary Fund.
Wakelin, K. (2001) Productivity Growth and R&D Expenditure in UK Manufacturing Firms, Research Policy, 30(7), 1079-1090. doi: 10.1016/S0048-7333(00)00136-0.
Wang, J. C., and Tsai, K. H. (2004) Productivity Growth and R&D Expenditure in Taiwan's Manufacturing Firms, In Growth and Productivity in East Asia, NBER-East Asia Seminar on Economics, 13, 277-296.
World Bank (2018) World Development Indicators. (accessed 25 May, 2018) http://databank.worldbank.org.
Wu, Y., Zhou, L. and Li, J. X. (2007) Cointegration and Causality Between R&D Expenditure and Economic Growth in China: 1953-2004, In International Conference on Public Administration, 76.
Yang, C. H. (2006) Is innovation the story of Taiwan's economic growth?, Journal of Asian Economics, 17(5), 867-878. doi: 10.1016/j.asieco.2006.08.007.
Descargas
Publicado
Cómo citar
Número
Sección
Licencia
The works published in this journal are subject to the following terms:
1. Oviedo University Press (the publisher) retains the property rights (copyright) of published works, and encourages and enables the reuse of the same under the license specified in paragraph 2.
© Ediuno. Ediciones de la Universidad de Oviedo / Oviedo University Press
2. The works are published in the online edition of the journal under a Creative Commons Attribution-Non Commercial-Non Derives 3.0 Spain (legal text). You can copy, use, distribute, transmit and publicly display, provided that: i) you cite the author and the original source of publication (journal, publisher and URL of the work), ii) they are not used for commercial purposes, iii) mentions the existence and specifications of this license.
3. Conditions of self-archiving. The author can archive the post-print version of the article (publisher’s version) on the author’s personal website and/or on the web of the institution where he belong, including a link to the page of the journal and putting the way of citation of the work. Economics and Business Letters and its URL https://reunido.uniovi.es/index.php/EBL/index are the only authorized source for correctly giving the reference of the publisher’s version in every mention of the article.
