Importance of RandD Expenditure for Economic Growth in Selected CEE Countries

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F47813059%3A19520%2F18%3A00011106" target="_blank" >RIV/47813059:19520/18:00011106 - isvavai.cz</a>

Result on the web

<a href="https://dx.doi.org/10.15240/tul/001/2018-4-008" target="_blank" >https://dx.doi.org/10.15240/tul/001/2018-4-008</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.15240/tul/001/2018-4-008" target="_blank" >10.15240/tul/001/2018-4-008</a>

Result language

angličtina

Original language name

Importance of RandD Expenditure for Economic Growth in Selected CEE Countries

Original language description

The goal of the article is to quantify the effect of RandD expenditure on economic growth in selected Central and Eastern European countries. From a methodological perspective, the research is based on Dumitrescu and Hurlin causality and the dynamic panel regression methodology, based on adapted growth model. The empirical evidence is performed on unbalanced annual panel data of eight selected countries (Bulgaria, Czech Republic, Hungary, Latvia, Poland, Romania, Slovak Republic and Slovenia), during the period 1995-2016. The research confirms that there is a trend to combine direct and indirect public funding instruments. Because of limited financial resources, indirect support has become more important in recent years. Cash grants and tax deduction are the tools most often used for support and funding of RandD in the selected CEE countries. A dynamic panel analysis with fixed effects confirms a positive and statistically significant impact of RandD expenditure on economic growth. Gov ernment RandD expenditure is reported to be a key driver for economic performance followed by business RandD expenditure, a higher share of persons with tertiary education and/or employed in science and technology and country openness. On the contrary, investment and higher education RandD expenditure were found to have a positive but statistically insignificant impact. Hence, special care of policymakers should be given to investment mix. It is decisive to direct and support investment to growth-enhancing areas (e.g. infrastructure and communication, RandD, education and health care) and to improve the ratio between current and capital investment. Attention should also focus on higher education RandD support, and future development must be concentrate on its cooperation with business sector especially in the area of applied research. Finally, a crisis is reported to have a negative and statistically significant impact on economic growth.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50202 - Applied Economics, Econometrics

Project

—

Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2018

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

E @ M EKONOMIE A MANAGEMENT

ISSN

1212-3609

e-ISSN

—

Volume of the periodical

21

Issue of the periodical within the volume

4

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

17

Pages from-to

108-124

UT code for WoS article

000453579100008

EID of the result in the Scopus database

2-s2.0-85058231760