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International R&D Spillovers, Human Capital and Productivity in OECD Economies: An Empirical Investigation

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Abstract

This paper extends Coe and Helpman's (International R&D spillovers, European Economic Review, 39, 859–887, 1995) study of international R&D spillovers amongst OECD countries by including a general human capital variable which accounts for innovation outside the R&D sector and other aspects of human capital not captured by formal R&D. This results in somewhat smaller coefficient estimates for domestic R&D capital and international R&D spillovers, but they remain highly statistically significant. General human capital is found to affect TFP directly as a factor of production, and as a vehicle for international knowledge transfer associated with productivity catch-up amongst OECD countries. It seems to play a distinct role from R&D in the economic growth processes of these economies.

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... Technological progress is the term widely used in innovation economics and management literature to indicate innovation and productivity improvement. Technological progress can be measured by the number of patents (Baba et al., 2009;Jaffe, 1989;Wirsich et al., 2016), an economic value associated with patents (Kogan et al., 2017), innovative outputs (George et al., 2002;Le and Tang, 2015), labor productivity (Eid, 2012) or TFP Helpman, 1995, 2009;Engelbrecht, 1997;Luintel et al., 2014;Kim and Park, 2017;Tsamadias et al., 2019). 6 Among these measures, TFP is perhaps the most widely used measure for technological progress in a country. ...
... Meanwhile, human capital is a critical source for a nation's technological progress (Schultz, 1961). Empirical evidence for the significant effect of human capital stock on TFP can be found in Coe and Helpman (1997), Engelbrecht (1997), Coe et al. (2009) andLuintel et al. (2014). Academics contribute to the development of a country's human capital through their educating and training responsibility, such as lecturing and supervising students, providing graduates and employees with vocational training (Bekkers and Freitas, 2008;Jones and de Zubielqui, 2017;Meyer-Krahmer and Schmoch, 1998;Rosenberg and Nelson, 1994;Varga, 2000;Zucker et al., 2002). ...
... Our measure of industrial R&D refers to the measure of total R&D capital stocks whose construction procedure is first initiated by Coe and Helpman (1995) and then widely followed by subsequent papers (e.g., Bayoumi et al., 1999;Engelbrecht, 1997) in the R&D-based growth literature. In particular, data on nominal industrial R&D expenditure, after being collected from OECD Statistical Database, is deflated by an R&D price index to generate R&D expenditure. ...
Article
Since frontier academic research is often thought to be driven by recognition and promotion rather than commercial values, its real contribution to a country's technological progress is sometimes doubted. Against this skepticism, this paper argues that frontier academic research resembles a public good and creates important scientific foundations for industrial innovation. When diffused to industry, it significantly contributes to the country's technological improvement. Using panel OLS and dynamic panel OLS estimation methods to analyze a dataset of 18 OECD countries during 2003-2017, this paper finds substantial support to this theory. Obtained results indicate that both frontier academic research and industrial R&D are beneficial to a country's technological progress, but a large proportion of the effect of frontier academic research on a country's technological development is transferred through industrial R&D. In countries with relatively abundant industrial R&D, frontier academic knowledge becomes relatively less attractive in production. These results are robust across different estimation methods, regression specifications, and different proxies of frontier academic research and technological progress. They convey important implications for policymakers in designing national strategies towards promoting a nation's long-term technological development.
... However, knowledge spillovers do not necessarily imply productivity growth, unless supported by domestic economic policies. Consequently, the literature suggests that an economy's ability to absorb, adapt, and diffuse new knowledge and foreign technologies depend on the quality of its education system, accumulated human capital, and knowledge stock (Kokko et al. 1996, Engelbrecht 1997, Kathuria 2002, Benhabib and Spiegel 1994, Blomström et al. 2003). An educated labour force and investment in research and development (R&D) speed up the internalisation of knowledge spillovers, thereby boosting economic growth and productivity. ...
... Subsequently, it increases domestic efficiency, productivity, and economic performance (Nelson and Phelps 1966, Lucas 1988, Frantzen 2000, Kwark and Shyn 2006, Teixeira and Fortuna 2010. This is one channel through which absorptive capacity affects productivity; the other works through substantial moderation effects of absorptive capacity on international knowledge spillovers (Coe and Helpman 1995, Engelbrecht 1997, Hejazi and Safarian 1999, Ali et al. 2016. Direct and indirect effects of absorptive capacity have been extensively discussed in policy and innovation literature for productivity growth in industrialised economies. ...
... In particular, the ability of the local economy/firms/regions or sectors to utilise and benefit from external linkages depends on their absorptive capacity (Cohen and Levinthal 1990). Relating absorptive capacity to human capital, several growth economists (Nelson and Phelps 1966, Engelbrecht 1997, Blomström et al. 2003, Joseph 2007, Li 2011) postulate that in a technologically advanced economy, the more educated the innovators, the faster will be the speed of new technology adoption and diffusion. In the same breath, productivity benefits are found to be associated with greater investment in R&D and a moderate technology gap measured by local learning capacity between foreign and local firms (Kokko et al. 1996, Glass andSaggi 1998). ...
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The paper explores the role of absorptive capacity in understanding the association between international knowledge spillovers and total factor productivity (TFP) growth in Indian manufacturing. Imports and FDI provide two major channels of knowledge spillovers while private research and development (R&D) and education-weighted human capital are used as proxies for domestic absorptive capacity. Applying pooled linear regression on 2-digit manufacturing sectors based on NIC 2008 (ISIC Rev. 4) for 2000–2016 in India, positive spillover effects of FDI and imports on TFP growth are confirmed. However, when looking at moderation effects, absorptive capacity is found to moderate the relationship between knowledge spillovers and domestic productivity negatively. When the manufacturing sectors are sub-grouped based on their technological intensities, interesting differences emerge. For the low-tech and medium–low-tech sectors, spillovers from FDI negatively affect TFP. In contrast, in the high-tech and medium–high-tech sectors, spillovers from imports as well as FDI have a dampening effect on productivity. With respect to interaction effects, absorptive capacity negatively moderates the relationship between FDI spillovers and TFP growth in the low-tech sectors. In the high-tech sectors, interestingly, human capital positively moderates import spillovers for productivity growth while no such moderation effect is found for R&D. Overall, results indicate that industries witnessing considerable FDI inflows and imports in recent years have not experienced direct productivity gains in the same proportion. This highlights the importance of absorptive capacity for productivity growth and the need for policy intervention at disaggregated sectoral level in India.
... Based on success stories of Korea, Taiwan, and Singapore, innovation and creativity is a key to success, a factor to improve labour productivity, and an engine for growth. Engelbrecht (1997Engelbrecht ( , 2002 suggested that the effect of FDI at the industrial level was neutral and unclear as the investors attracted to invest in a country might not necessarily adopt advanced technology. Hale and Long (2011) argued that the spillovers of FDI to domestic enterprises were greatly affected by institutions. ...
... However, the effects of FDI and human capital on labour productivity in this empirical research are still concluded ambiguously. Benhabib and Spiegel (1994), Engelbrecht (1997), andFrantzen (2000) found the effect of FDI, yet found no effect of human capital on labour productivity. Explaining this result, the authors claimed that there were a significant gap in quality between workers in MNEs and those in domestic enterprises. ...
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The paper aims to investigate whether foreign direct investment (FDI) has positive effect on the labour productivity in Vietnam. Labour productivity is the elemental determinant of a country's development level in long-term. In recent years, although increasing consistently, labour productivity of Vietnam remains low in comparison to other South East Asian countries. To identify the direction of effect and the level of effect of FDI and human capital on the labour productivity of Vietnam, Autoregressive Distributed Lag (ARDL) model was used to examine the effect of FDI and human capital on labour productivity in Vietnam from 1986 to 2014. The results of bounds test confirm the existence of cointegration among the variables. Further, the Toda and Yamamoto Granger causality test affirms that there is unidirectional causality running from foreign direct investment and human capital index to labour productivity. The empirical results provide strong statistical evidence that foreign direct investment and human capital has a positive impact on labour productivity in Vietnam in long-term. These findings imply that workers are expected to further improve their knowledge, skills and that policy-maker should establish concrete plans to increase human capital. Results from this study provide suggestion necessary for Vietnam to achieve sustainable development.
... A section of the literature has focused on the impacts of R&D on productivity. In this context, Coe and Helpman (1995) find that foreign R&D has beneficial effects on domestic productivity, and the estimated rates of return on R&D to be high, both in terms of domestic output and international spillovers (Engelbrecht (1997)). ...
... The index of innovation linkages would also aid in capturing cross-sectoral, in addition to cross-national, connections that are often hard to determine (Dietzenbacher 2000). Indeed, as noted by Engelbrecht (1997) and others, some innovation occurs outside the R&D sector. A broader index would capture some of these aspects. ...
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This paper identifies channels of influence of foreign linkages on innovative activity in nations and it compares the relative effects of aggregate innovation linkages, FDIs, high-tech imports, and ICT imports, on patenting across a large sample of nations. Whereas various drivers of the international innovative activity have been studied in the literature, our understanding of the contributions of different linkages to innovation deserves more attention. We ask: Are the different innovation linkages equally complementary to research inputs in fostering innovation? We find that a broader index of innovation linkages shows positive and significant spillovers on innovation. We also find some support for the positive link between FDIs and innovation; however, high-tech imports and ICT imports have opposite effects on innovation, with the former effect being negative. These spillovers are reinforced by the positive and expected impacts of R&D spending. In other results, greater venture capital investments boost innovation in most cases. The findings are somewhat sensitive across two alternative measures of patenting and there are some nonlinearities in the influence of FDIs and imports on innovation.
... In regard to findings, our paper is consistent with the firm-level study of Baltagi et al. (2016), which also discovers the spillover effects among Chinese chemical firms. Our paper is also closely related to the literature that finds the positive effect of human capital on productivity, such as Rauch (1993), Griliches and Regev (1995), Engelbrecht (1997), Fafchamps and Quisumbing (1999), Maudos et al. (1999), Moretti (2004), Henderson and Russell (2005), Shapiro (2006) and Benos and Karagiannis (2016). In addition, our paper is in line with the study of Chun-Chien and Chih-Hai (2008), which finds human capital increases output in China due to the employees' ability to absorb external knowledge. ...
... Our finding is neither an artifact of human capital data nor a stand-alone result in the macro and micro literature. It extends the cross-country study of Engelbrecht (1997) that human capital facilitates international technology diffusion among the OECD countries. It also echoes the cross-firm study of Fons-Rosen et al. (2017). ...
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This paper examines whether there are productivity spillover effects among clustered firms and, if so, whether a firm’s human capital affects its absorption of spillovers. To analyze these questions, we use a semiparametric spatial autoregressive production function in which the coefficients are smooth unknown functions of firms’ human capital. The varying coefficients not only allow flexible interactions between human capital and other inputs, but also permit heterogeneous spatial dependence and spillover effects among firms. Although the commonly used spatial matrix captures the possible learning opportunities among firms, we hypothesize that a firm with more human capital is better at seizing these opportunities. We address the simultaneity issue arising from the endogeneity of inputs by using the proxy variable method. Finally, we apply the model to analyze the productivity spillovers and the human capital effect of China’s computer and peripheral equipment industry from 1998 to 2007.
... Besides, R&D activities play an important role in economic development. The linkage between innovation and productivity was broached in a seminal paper by Coe and Helpman (1995), and the model was subsequently extended to include human capital (Coe et al., 1997;Engelbrecht, 1997). Such models were more recently investigated considering geographical spillovers and spatial externalities (Benos et al., 2015;Bronzini & Piselli, 2009), proving that neighbouring regions foster knowledge transfer, and that J o u r n a l P r e -p r o o f there are also knowledge spillovers across distant regions. ...
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This paper studies the impact of renewable energy on the total factor productivity (TFP), considering the role of human capital, innovation and trade openness in Organisation for Economic Co-operation and Development (OECD) countries. By applying Cross-Sectional Autoregressive Distributed Lags (CS–ARDL) technique, we analyse panel time-series data. We find our variables are non-stationary and strongly correlated across sample countries. Our findings support the argument that the use of renewable energy in the production process spurs TFP in the long run through different macroeconomic channels. Fossil fuel-driven production process is found to be inconclusive in influencing TFP in the long run. Human capital and technological advancement appear to be driving factors in spurring TFP in OECD countries. Our findings are robust in the presence of the common correlation effect, as well as heterogeneous and homogeneity restrictions in the short-run and long-run parameters. We identify several resultant policy implications.
... The research on this particular theme is focused on transfer of technical knowledge among the subsidiaries of MNCs (Chiesa & Manzini, 1996), cross-border collaboration and funding between industry and academics to promote the technology development and transfer (Howells & Nedeva, 2003), R&D driven economic growth, cross-border knowledge spill over and innovation (Diao, Roe, & Yeldan, 1999). Other topics include R&D cooperation and knowledge spillovers, through joint ventures (Vonortas, 1994), the role of human capital in international knowledge transfer and productivity in OECD countries (Engelbrecht, 1997) and R&D networks and innovation in MNEs. ...
Article
This paper systematically reviews the relationship between cross-border knowledge flows and innovation across several literature strands in international business, management, strategy and innovation. We contribute to the international business literature by documenting, for the first time, the evolving nature of the relationship between cross-border knowledge flows and innovation, across several themes. In particular, our unique reviewing technique allows us to uncover and map in detail how the cross-disciplinary literature strands have explored the topic in the past, how it has developed to our current level of understanding as well as giving insights into where the literature is likely to head and develop in the future. Our numerous findings cover both empirical and conceptual developments, which in turn have their origins partly in other disciplines. Knowing the interrelationships between disciplines on this topic offers us a rare insight into the complex nature of previous and ongoing research from which we draw a number of important implications for theory, practice as well as future avenues for research, through five pivotal areas, to which we contribute.
... Para identificar la frontera del conocimiento y seleccionar la metodología adecuada, se llevó a cabo una revisión sistemática de la literatura sobre estudios empíricos. Al analizar el conjunto de estudios, se observa que esta rama de la literatura centra su atención en países pertenecientes a la Organización para la Cooperación y Desarrollo Económicos (OCDE), como son los casos de Coe y Helpman (1995), Engelbrecht (1997), Kao et al. (1999), Frantzen (2000, Guellec y De La Potterie (2002) o Zhu y Jeon (2007). Los autores argumentan que el capital humano afecta la productividad total de los factores, dado que, se considera como un vehículo importante de transferencia de conocimientos. ...
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El objetivo de la investigación es el análisis de la influencia del nivel educativo de la fuerza laboral, la acumulación del capital intelectual, la capacidad de innovación y de la transferencia de conocimientos sobre la actividad económica de las entidades federativas de México. Para este objetivo, se estimaron diferentes especificaciones de un modelo panel que toman en cuenta los patrones de correlación espacial de la actividad económica y argumentos no observables de la función de producción de entidades colindantes. Los resultados sugieren que, al disminuir la proporción de trabajadores con niveles de educación más bajos, al aumentar la acumulación de capital intelectual y al intensificar el intercambio de bienes y servicios con el exterior, el nivel de producción se incrementa.
... PMG/ARDL methodology was also tested in the model with the alternative narrower metric definition of leverage total firm's debt to total assets and in the one where the human capital index replaced TFP, coming up with qualitatively similar results, which are available upon request. 9 Mankiw, Romer, and Weil (1992) mentioned a relation between TFP and the human capital model, while Lucas (1988) also linked human capital with the TFP growth (see also Barro, 1991;Engelbrecht, 1997 andMurthy &Chien, 1997). 10 The results with LED as dependent variable using the VECM per country group (EMU and non-EMU) and firm size (not reported here due to space limitations) are similar with those obtained with LET. ...
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This article investigates the influence of the macroeconomic environment on corporate leverage. Using panel data of European listed SMEs, we examine the relationship between capital structure and country-level total factor productivity (TFP), GDP growth, interest rates and stock market development across firm categories (micro, small, and medium) and monetary regimes (EMU and non-EMU countries) for the period 2005–2015. By performing a dynamic panel data analysis into a vector error correction framework, along with several model specifications and robustness tests, we provide new evidence that country-level TFP is an important determinant of capital structure choice, while its impact depends on the institutional environment (inside the EMU or not). Although there are both short-run and long-run dynamic relationships between the corporate leverage and the macroeconomic factors, to EMU or not to EMU is also evident when looking at the three size categories. Overall, our results suggest that all SMEs are not the same, and the determinants of their capital structure vary across size categories.
... Landau (1983), Barro (1991) and Mankiw, Romer and Weil (1992), among other authors, find that a variety of educational indicators have the expected positive effect on output levels. Some of the relevant papers find rather clear indications that the level of education is an important determinant of the rate of technological progress and that this positive rate effect seems to work, at least in part through the role of education in facilitating the absorption of foreign technologies (see, for instance, Engelbrecht, 1997). 5 ...
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... They found that international R&D spillovers have a positive impact on productivity and depend on the level of trade openness. Engelbrecht (1997) extended the study by Coe and Helpman (1995) adding a human capital variable. Since there exists innovation outside the R&D sector and formal R&D does not capture some aspects of human capital, he concluded that human capital has a distinct role within the growth of OECD countries by its impact on TFP. ...
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This study investigates the effects of foreign direct investment (FDI) and royalties and licence fees (RLF) on total factor productivity (TFP) growth of about 90 countries for the period 2003-2011 for both inward and outward variables. The estimates for the full sample indicate that while inward FDI stocks have no significant impact, outward FDI stocks reduce TFP growth. While none of the RLF measures have any significant effects, imports and exports have significantly positive effects on TFP growth for the full sample. Outward FDI stocks and RLF payments are estimated to have negative effects on TFP growth for developing nations. Moreover, both RLF receipts and payments are found to have a positive effect on TFP growth in developed nations. To stimulate TFP growth further, developing nations should improve their domestic business environments and find ways to keep investments at home
... This is due to the fact that human capital helps people to perceive, evaluate and implement new production techniques and inputs. A considerable amount of empirical literature, both at the firm level and the economy as a whole, has also indicated that the level of human capital explains a significant part of the variation in productivity (Backman, 2014;Ballot et al., 2001;Black and Lynch, 1996;Engelbrecht, 1997). However, the findings of these studies are generally based on only one aspect of human capital, mostly formal schooling, without considering other aspects and a sample data of a single country (Colombo and Stanca, 2014). ...
Article
Purpose Although the impact of human capital on productivity has long been discussed in prior studies, empirical evidence for African firms remains limited. The existing few studies have focussed on one type of human capital in isolation and failed to explore the distinct role of different types of human capital on productivity. The aim of this study is to examine the extent to which various typologies of human capital – schooling, on-the-job training (OJT) and slack time –, both in isolation and as a combination, contribute to the productivity of African firms. Design/methodology/approach To this end, a cross-sectional firm-level data set from 13 African countries was used. To unravel the casual relationship, propensity score matching (PSM) and multinomial endogenous switching treatment regression (MESTR) techniques were employed. Findings Results indicate that all typologies of human capital – schooling, slack time and OJT – have a significant and positive impact on firms' productivity. The findings of the study further point out that the highest payoff, in terms of increased productivity, is achieved when various typologies of human capital are used in combination, rather than in isolation, in the production process. Practical implications The policy implications are that productivity of African firms can be improved by increasing the general level of schooling; encouraging firm-sponsored OJT; and giving employees time to develop new ideas. Originality/value The present study provides important insights into the distinct role of different types of human capital on productivity. In addition, it provides empirical evidence for a region where empirical evidence is scant.
... Education spending within public spending has been associated with economic growth negatively and not important. Engelbrecht (1997) also argues that human capital is not only considered as a factor in the study, but is also an important input of new growth theories. The effects of R & D expenditures in the empirical model are also estimated. ...
... Province p's GDP in year t-1, GDP p,t-1 , is included to capture the impact of regional economic development on innovation in high-tech industries. Third, human capital is of course important in the process of innovation [20]. HC p,t-1 denotes the quality of human capital, calculated as the number of college graduates of province p in year t-1. ...
Article
Public funds play an important role in promoting innovation in high-tech industries. Using a dataset on China’s high-tech industries, this paper seeks to pay attention not only to the direct effects of public funds on the innovation dynamics of high-tech industries, but also to their indirect effects and the articulation of public and private funds. Empirical results first confirm that public funds could boost the innovation performance of high-tech industries in terms of the development of patents and new products. However, the share of public funds should be maintained at a certain level to avoid an over-reliance on public funds. Second, our results also confirm the indirect effects of public funds. Specifically, at the R&D stage, public funds can enhance the effects of private funds on high-tech firms’ innovation performance, given their different but complementary resources, while at the application stage, public and private funds conflict with one another in terms of interests and needs. Finally, the direction and magnitude of public funds’ direct and indirect effects vary across regions and industries. Our findings imply that public funds may be needed more in lagging regions and immature industries that suffer severely from lack of financial resources and some other fundamental factors for innovation in high-tech industries.
... Various studies, particularly including Grossman & Helpman (1991), Aghion & Howitt (1992), Coe & Helpman (1995) and their reassessment with more modern econometric techniques (Coe et al., 2008) have shown that TFP is influenced by domestic R&D and the R&D of trading partners, human capital, business cycle, infrastructure, openness of the national economy (share of exports and imports to GDP), foreign direct investment and direct investment of a given national economy abroad. The importance of human capital on TFP growth was first analyzed by Engelbrecht (1997). The impact of R&D on TFP is heterogeneous. ...
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In the modern world of rapidly changing technologies, fiscal policy engagement is also needed to promote and adapt to these changes. In order to achieve economic growth, every country needs to ensure an adequate institutional environment and financial incentives for technological development. These investment incentives operate through tax system directly or indirectly. The aim of the paper is to assess the impact of Slovenia's endogenous economic growth factors on exports in the 2009-2016 period. A panel data analysis was applied to obtain empirical results. The analysis showed that a 1 % real increase in government subsidies to the economy over three subsequent years increases real investment in research and development by 0.45 %, and after a two-year period yields a 0.27 % increase in employment of persons with higher education. The latter has a 0.14 % positive impact on the growth of exports after another three-year term. In addition to endogenous factors of economic growth in the Slovenian case, exports are also affected by the dynamics of real world trade, by the dynamics of exchange rates corrected for relative prices, and by the dynamics of wage rates.
... Since a country"s ingenuity in adopting transferred technologies and deriving benefit from them is closely related to its absorption capacity, the level of human capital in a country is indeed one of the main factors determining the country"s competence to acquire and use transferred technology (Borensztein, Gregorio and Lee, 1998). In the literature, there are many studies that have explored the effect of human capital on productivity gains (Engelbrecht, 1997;Barrio-Castro, Lopez-Bazo and Serrano-Domingo, 2002;Nieto and Quevedo, 2005;Leahy and Neary, 2007;Mancusi, 2008). ...
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This study analyzes the relative impact of multiple diffusion channels on the manufacturing total factor productivity (TFP) of emerging countries within the EU plus Turkey. The prospected contribution of this research is that it analyzes the effects of multiple diffusion channels and focuses on emerging countries using data from the recent time period 1994-2008. The international technology diffusion channels included in the analysis are foreign R&D intensity, import of technology goods and foreign direct investment (FDI). Human capital, which serves as a proxy for absorptive capacity, is also included in the analysis. Although the main focus of this research is international technology diffusion, the impact of domestic R&D expenditures is also examined in order to compare the magnitude of its effect on TFP in combination with the selected international technology diffusion channels. The findings indicate that foreign R&D, imports of technology goods and human capital have a positive impact on the manufacturing industry TFP. Among these factors, foreign R&D has the greatest impact on TFP growth, whereas the import of technology goods has the least impact. The estimates also show that FDI and domestic R&D expenditures have no effect on manufacturing TFP for the selected countries. Jelcodes:O33,-Abstract This study analyzes the relative impact of multiple diffusion channels on the manufacturing total factor productivity (TFP) of emerging countries within the EU plus Turkey. The prospected contribution of this research is that it analyzes the effects of multiple diffusion channels and focuses on emerging countries using data from the recent time period 1994-2008. The international technology diffusion channels included in the analysis are foreign R&D intensity, import of technology goods and foreign direct investment (FDI). Human capital, which serves as a proxy for absorptive capacity, is also included in the analysis. Although the main focus of this research is international technology diffusion, the impact of domestic R&D expenditures is also examined in order to compare the magnitude of its effect on TFP in combination with the selected international technology diffusion channels. The findings indicate that foreign R&D, imports of technology goods and human capital have a positive impact on the manufacturing industry TFP. Among these factors, foreign R&D has the greatest impact on TFP growth, whereas the import of technology goods has the least impact. The estimates also show that FDI and domestic R&D expenditures have no effect on manufacturing TFP for the selected countries.
... This suggests that educational attainment has a key role to play in reducing income inequality through improved labour market opportunities. The literature on what differentiates high growth economies from stagnating ones notes that it is often the accumulation of technical knowledge through high quality education, thus allowing a society to assimilate foreign technology and improve levels of productivity (Nelson and Phelps 1966;Abramovitz 1986;Engelbrecht 1997;Gill and Kharas 2008). An outcome of the apartheid government's policy was first a highly unequal schooling system, and second, a tertiary education system that was not accessible to those with poor levels of schooling. ...
... where gap it is the technology gap, and A i (t) is the current technology level of area i; maxA j (t) represent the technological boundaries of the country. According to Engelbrecht [77], if we assume that the ratio of material capital, human resources, and total factor productivity in the production function does not change over time, then per capita gross domestic product (GDP) can be used to measure the level of technology. Therefore, article assumes this A i (t) that the technological boundary in China is the maximum GDP per capita in all provinces, and it is measured by GDP per capita of region i. ...
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The article aims to explore which types of proximity approach can foster university–industry (U-I) collaborations for innovation and discuss the role of different dimension regional absorptive capacity in cooperation to promote inter-regional partnerships from “unbalance” to “coordination”. Therefore, we intercept 484 pairs of cooperative entities and analyze proximity effects and heterogeneity cross-regional U-I collaborations by hierarchical regression. The results show: (1) In non-local contexts, geographic distance is not a hamper for improving innovation performance. The economic development level has no significantly different effects on such a role. (2) Technological proximity plays a negative role in increasing innovative performance, and the eastern region has the most noticeable results. (3) The closer in social distance can get more innovation performance in eastern and western, but the central area negatively affects. (4) The U-I collaborations for innovation performance-enhancing advantages are not equal for all regions but are moderating by specific regional absorptive capacity dimensions. The areas with a higher level of internal human capital can get more catch-up effects. The lagging regions should increase talents to promote cross-regional cooperation for catching up. In contrast, the prosperous areas should take advantage of the talent-gathering effects to promote knowledge spillover.
... First, human capital exerts a significantly positive effect (around 0.10) on green productivity. This finding is in accordance with the extensive literature of endogenous growth theory, which claims that human capital is the most influential force capable of boosting productivity (Romer 1990;Coe et al. 1997;Engelbrecht 1997). By contrast, capital accumulation shows a significantly negative impact on green productivity possibly because much investment is undertaken by large but inefficient state-owned enterprises (Chen and Golley 2014), and concentrates on energy-intensive areas or industries (Li and Lin 2017). ...
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When technologies could be “dirty” and “clean” in the context of green development, technical change does not necessarily mean (green) productivity growth. This paper studies the nonlinear impact of technical change on green productivity in China by applying a panel smooth transition regression approach with a panel data set of 284 prefecture-level cities from 2004 to 2015. Green productivity is measured by the meta-frontier Malmquist–Luenberger productivity growth (MML) index. Technical change is considered in three dimensions: indigenous technical change indicated by the stock of knowledge based on patents, technology transfers from foreign direct investment (FDI), and absorptive capacity. We find a non-linear relationship between technical change and green productivity contingent on specific economic situations and the city’s endowment of natural resources. In general, indigenous technical change shows an adverse effect on green productivity in China, which is much more prominent in the resource-dependent cities than in the non-resource-dependent cities. Technology transfers from FDI may either improve or hinder green productivity growth as economic situations change, while absorptive capacity has a small but positive effect. Also, these two effects are affected by the city’s endowment of natural resources. Accordingly, we discuss some policy implications.
... Jones, 1995). Engelbrecht (1997) and Del Barrio-Castro, Lopez-Bazo and Serrano-Domingo (2002) find that R&D spillovers are actually statistically significant in empirical specifications that include human capital. Several authors have also pointed out that the R&D activity may be subject to an external effect associated to the duplication and overlap of research effort  a "stepping on toes" effect (e.g., ...
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The subject matter of research is the examination of the optimal public policy in an R&D-based endogenous growth model with monopolistic supply of intermediate goods. The goal of the work is to study whether an adequate government intervention can provide the required incentives to correct market inefficiencies and make the decentralized economy to replicate the optimal solutions attainable by a social planner. The article solves the following tasks: finding the model economy’s decentralized equilibrium and social optimal solution, comparison of the welfare effects of different fiscal variables, consideration of the different market distortions and the choice of the appropriate policy variables that allow the decentralized economy to achieve sustainable optimal growth. Methods of mathematical formulation, theoretical analysis and economic interpretations have been used. The following results were obtained: the first-best optimum can be decentralized by means of a tax on capital income at a constant rate combined with equality between the share of public spending in the total expenditure on education and the tax on labor income and a time-varying subsidy to R&D. Conclusions. Investments in knowledge-capital are the principal determinants of economic development. Our model incorporates three sources of inefficiency: monopolistic competition in the intermediate-goods sector, duplication externalities and spillovers in R&D. To correct these imperfections and achieve sustainable optimal growth, the intervention of the state by an effective fiscal policy is necessary.
... public expenditure on education has been negatively and not importantly linked to economic growth. Engelbrecht (1997) also argues that human capital is not only considered a factor in the study but also an important input of new theories of growth. Effects of R&D expenditure are also estimated in the empirical model. ...
... Dans ce cas, une des pistes cŠest de considérer que la mise à disposition de ces infrastructures est facilitée par le capital humain. DŠautant plus quŠun autre volet de la littérature a également souligné que le capital humain peut jouer un rôle central dans la promotion de la croissance économique et des échanges commerciaux(Coe et al., 1997;Engelbrecht, 1997). Ces études ont élargi leur cadre en incorporant le capital humain dans leur analyse empirique. ...
Thesis
Dans cette thèse nous analysons les mécanismes qui lient l'ouverture commerciale des pays à leur trajectoire d'industrialisation. Nous nous intéressons particulièrement aux pays en développement, notamment ceux du continent Africain, eu égard à leur forme particulière de spécialisation de la production— essentiellement orientée vers les produits agricoles et miniers. Nous visons à comprendre l'évolution de ces formes de spécialisations afin d'identifier des trajectoires possibles de développement industriel. Le Chapitre 1 offre un aperçu global de la littérature sur les déterminants théoriques de la spécialisation internationale et accorde une attention particulière aux théories insistant sur une vision dynamique des avantages comparatifs. Ce chapitre pose les bases de la thèse et des chapitres suivants. Il met en avant deux formes particulières de capital, à savoir le capital public et le capital humain, facteurs qui peuvent être à l'origine du développement d'un avantage comparatif dans le secteur manufacturier. A partir des données sectorielles pour des pays d'Afrique Sub-Saharienne et du Nord (ASSN) et d'une méthodologie d'estimation intégrant les déterminants classiques et néoclassiques des avantages comparatifs, le Chapitre 2 cherche à identifier les déterminants de la spécialisation de la production et son évolution au cours du temps. Le Chapitre 3 poursuit l'analyse à l'aide des données plus désagrégées au niveau des branches industrielles. Nous approfondissons les estimations en analysant les performances à l'exportation (à la différence de la spécialisation de la production) et portons un intérêt particulier au rôle joué par l'accumulation de capital public selon que les pays se trouvent loin ou à proximité de la frontière technologique mondiale. Si les deux premiers chapitres laissent apparaitre un certain rôle positif du stock de capital public dans le développement d'avantages comparatifs sur les branches industrielles, cet effet n'est pas systématique. Le Chapitre 4 tente d'expliquer ces ambiguïtés en prenant en compte la complémentarité entre capital humain et public, ce dernier étant envisagé ici comme de l'infrastructure publique mise à disposition de l'économie. Nous proposons un modèle théorique simple pour détailler cette idée et testons ces prédictions sur un échantillon similaire à celui mobilisé dans le chapitre précédent, considérant cette fois-ci des indicateurs d'avantage comparatifs révélés. Le chapitre montre que la capacité des infrastructures publiques à engendrer une industrialisation est d'autant plus importante que le stock de capital humain du pays est élevé.
... This line of thinking also emphasizes that the sole reliance on spillovers may not only lead to a severe R&D underinvestment in lagging areas but may also condemn them to technological dependence, especially since the capacity of these areas to free-ride on technological advances generated elsewhere is limited (Rodríguez-Pose, 2001). Conversely, the Schumpeterian approach argues that returns from R&D rely heavily on the quality of the personnel conducting the research, on the concentration of R&D centers in limited areas, on the quality of the local human capital (Audretsch & Feldman, 1996;De Bondt, 1997;Engelbrecht, 1997), and above all, on the amount of investment (Dosi, 1988;Scherer, 1982). Limited and/or dispersed investment in R&D in lagging areas may not yield the expected returns in terms of technological progress since most R&D projects might lack optimal circumstances to conduct competitive research. ...
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We assess the impact of the EU Regional Policy on regional economic growth by applying a new evaluation strategy, which integrates mediation analysis with a quasi-experimental framework. Using the R&D expenditure as an indicator of innovation capability, we evaluate how much of the total effect of the EU Regional Policy is due to R&D in the poorest EU regions. Consistently with the previous literature, we found a positive impact of the overall policy on economic growth, but, among the convergence regions, those investing a higher proportion of funds in R&D have the same convergence rate as regions investing more in other priorities. These findings confirm that the EU Regional Policy played an important role in the economic recovery of the poorest regions in the aftermath of the Great Recession. However, focusing resources on R&D does not seem to provide additional economic benefits, at least in the short run.
... Our paper relates and adds to the literature pioneered by Coe and Helpman (1995) and subsequent studies on (domestic and internationally generated) knowledge and productivity growth (Park 1995;Eaton and Kortum 1996;Engelbrecht 1997;Keller 1998Keller , 2002bKao et al. 1999;Schiff and Wang 2006;Coe et al. 2009). Imports of capital or intermediate goods are the main mechanism where embodied or disembodied knowledge of new production techniques and skills is transmitted. ...
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We study the effects of unanticipated technological shocks across the most innovative economies in the world. We examine who leads and follows in the global technological race and how technological shocks in one country shape innovation activity in another. We put forward a useful approach in modeling the dynamic interdependencies of knowledge spillovers across countries, which exploits the modeling capabilities of the so-called network Global Vector Auto-Regressive (GVAR) framework. Our empirical evidence, on a selected panel of most innovative world economies over the period 1986–2013, show that the USA and China are the dominant countries in the system.
... Six countries in the sample do not have data on productivity include: Honduras, Mauritius, Nicaragua, Panama, Paraguay, and El Salvador. 9 See also Engelbrecht (1997); Dowrick and Nguyen (1989); Madsen (2007) where ΔY i is the outcome variable of country i (output growth, TFP, consumption growth, investment growth). Excess i is the intensity of the pandemic, measured as the excess death rate from Influenza and pneumonia. ...
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We evaluate the 1968 H3N2 Flu pandemic’s economic cost in a cross-section of 52 countries. Using excess mortality rates as a proxy for the country-specific severity of the pandemic, we find that the average mortality rate (0.0062% per pandemic wave) was associated with a decline in output of 2.4% over the two pandemic waves. Our estimates also suggest the losses in consumption (-1.9%), investment (-1.2%), and productivity (-1.9%) over the two pandemic waves. The results are robust across regressions using alternative measures of mortality and output loss. The study adds to the current literature new empirical evidence on the economic consequences of the past pandemics in light of the potential impacts of the Covid-19 pandemic on productivity.
... Traditionally, the drivers of economic growth have been found to be capital, domestic and foreign investment, labour force, total factor productivity, health, trade openness and education (human capital) (Azam and Khattak, 2005). However, the new growth (endogenous growth models) theorist led by Aghion and Howitt (1992) and Engelbrecht (1997) introduced the role of research and development on economic growth. The former linked innovations, quality labour force and research productivity on economic growth while the latter stressed on the role of R&D on domestic innovation and international knowledge spill over's which leads to economic growth. ...
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African continent has been spending the least amount of research and development in the world. It allocated an average of 0.05 per cent of its gross domestic product to research and development between 2000 and 2017. This is far from the one per cent target set by the African Union for the region by 2020. Similarly, expenditures by the African countries represent only 1.53 per cent on all the research and development expenditures globally. The share of researchers per million is also minimal: an average of 14 researchers per million people compared with the benchmark, United States of America, of 2719 researchers per million. This is 194 times less than USA's share. Studies have shown that R&D expenditure has great capacity to promote innovations, create jobs, promote economic growth and increase the standard of living. Spending on research and development is expected to address the likely future social and economic crisis associated with a burgeoning youth in the continent (as at 2016, 41 per cent of the continent's population was under the age of 18). This article sought to explore the recent trends in research and development across different continents, identify the challenges facing research and development in Africa, find out the size effect of research and development on economic development across different continents and find out how government, companies, science councils, universities, research institutes and other research oriented agencies can increase research and development expenditure output in Africa based on evidence from top performing countries. The study found that the effect of research and development on GDP per capita in Africa is almost the same with that of Middle East and North Africa, East Asia and the Pacific and the Latin America and the Caribbean. However, the effect is strongest in South Asia and Europe and Central Asia. This clearly illustrates that the higher the expenditure on research and development, the higher the GDP per capita. The study recommends that African countries need to provide a suitable environment that allows investment in essential technologies like food and agriculture, energy, transport, medicine, among others. This will ensure faster attainment of SDGs, better quality jobs and higher standards of living.
... He later [35] references the concept of innovation processes. Manifesting the importance of Schumpeter's works, an extensive literature of empirical evidence on innovation emerges [36][37][38] that provides information for companies to develop a competitive advantage or to gain entry into new markets [39][40][41]. ...
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Other than serving as the introduction to this special issue, this paper looks at the question of how an underdeveloped or a developing economic entity can manage to acquire the knowledge and ability to overcome various barriers, be they social, cultural, or institutional, to establish its desired momentum of self-sustained growth. It addresses the question by surveying relevant literatures, first, about what factors, both internal and external, positively determine the innovativeness of an economic entity; and second, regarding what steps are necessary for an underdeveloped or a developing entity to engineer its momentum of self-sustained growth and for an established entity to maintain its existing momentum. By doing so, we demonstrate the theoretical significance and practical importance of this issue and the works contained in this issue.
... As Farole et al. (2009, p. 25) (after Rodríguez-Pose, 1999 argue, 'the local economic tissue may lack the capacity to successfully absorb the fruits of technological progress realized elsewhere and to achieve the passage to innovation themselves'. Essentially, the concentration of R&D and high-quality human resources stimulates returns on R&D expenditure (Audretsch & Feldman, 1996;Engelbrecht, 1997). It is to the detriment of lessdeveloped countries or regions lacking capacity that they successfully attract physical and human capital. ...
Article
This paper analyses the effect of the macroeconomic efficiency of Cohesion Policy on within-country economic cohesion as reflected by various measures of sigma convergence by applying macroeconomic HERMIN models for the Czech, Polish and Slovak regions. The results reveal that from 2021 to 2027, Cohesion Policy will have a relatively small impact on within-country convergence. More importantly, Cohesion Policy seems to be doomed to fail in terms of reducing within-country disparities in the long run; that is, the structural differences among regional economies effectively prevent European Union support from narrowing the development gap between regions. https://www.tandfonline.com/eprint/IWHBVFMQRW8HZQ4RDI7H/full?target=10.1080/00343404.2022.2037541
... PMG/ARDL methodology was also tested in the model with the alternative narrower metric definition of leverage total firm's debt to total assets and in the one where the human capital index replaced TFP, coming up with qualitatively similar results, which are available upon request. 9 Mankiw, Romer, and Weil (1992) mentioned a relation between TFP and the human capital model, while Lucas (1988) also linked human capital with the TFP growth (see also Barro, 1991;Engelbrecht, 1997 andMurthy &Chien, 1997). 10 The results with LED as dependent variable using the VECM per country group (EMU and non-EMU) and firm size (not reported here due to space limitations) are similar with those obtained with LET. ...
Preprint
This paper contributes to the existing literature in several ways. Firstly, it fills the gap in the SME’s capital structure literature by shedding light on the relationship between the macro factors of each country and financial leverage of SMEs. We expect to find significant convergences and/or divergences between these factors and financial leverage across European countries belonging in different institutional environments and across firm size categories.
... This is "embrained" in individuals, and therefore consists of "knowledge that depends on conceptual skills and cognitive abilities" (Blackler, 1995, 1,023). Engelbrecht (1997) indeed links tacit knowledge to human capital that play a key role in explaining the impact of knowledge on productivity. The novelty in this paper is the evaluation of IBTC in conjunction with the output elasticities of the respective intangibles. ...
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Purpose This paper analyzes the productivity effects of structural capital such as research and development (R&D) and organizational capital (OC). Innovation work also produces innovation-labor-biased technical change (IBTC) and knowledge spillovers. Analyses use full register-based dataset of Finnish firms for the period 1994–2014 from Statistics Finland. Design/methodology/approach Intangibles are derived from the labor costs of innovation-type occupations using linked employer-employee data. The approach is consistent with National Accounting and offered as one method in OECD (2010) and applied in statistical offices, e.g. in measuring software. The EU 7th framework Innodrive project 2008–2011 extended this method to cover R&D and OC. Findings Methodology is implementable at firm-level and offers way to link personnel reporting to intangible assets. The OC-IBTC as well as total resources allocated to OC are relevant for productivity growth. The R&D stock is relatively higher but R&D-IBTC is smaller than OC-IBTC. Public policy should, besides technology policy, account for OC and OC-IBTC and related knowledge spillovers in the industries that are most important among the SMEs (low market-share-firms). Research limitations/implications The data are based on remote access to Statistics Finland; the data cannot be disseminated. Originality/value Intangible assets are measured from innovation work that encompasses not only R&D work. IBTC is proxied in production function estimation by relative compensations on IA work. The non-competing nature of IAs is captured by IA knowledge spillovers. The sample sizes are much higher than in earlier studies on horizontal knowledge spillovers (such as for SMEs,) thus bringing additional generality to the results.
Thesis
p>This thesis comprises of three major chapters concerning the effects of demographic factors on aggregate human capital and through it on economic growth. Although human capital can exist only embodied in individuals, this embodiment property has been relatively neglected in the literature. Chapter 3 aims in showing that exactly because of this property, the demographic features of an economy are very important for this economy's aggregate human capital and through it economic growth. In particular, instead of assuming an aggregate accumulation function of human capital, as in the literature, in chapter 3 I rather aggregate the education decisions of the individual economic agents. The result is that the demographic features of an economy affect its human capital accumulation in various ways, missed when one aggregates the accumulation function instead of the education decisions of the economic agents. Although the endogenous technology literature recognises human capital as the power that drives technology and through it economic growth, it usually treats it as exogenous and fixed. As a result, it finds a linear relationship between the population size or growth rate and technological improvement. In chapter 4 I introduce human capital investment in an endogenous technology framework. It is shown that even without the effects of the previous chapter, population affects technological improvement both directly and through the stream of human capital, with technology also having a feedback effect on the latter. Multiple are therefore the effects of demographic factors on innovation and economic growth, which can explain certain facts, the most important of which is the growth patterns of the last two centuries. Borrowing constraints on households have been found to have positive effects on physical and negative on human capital accumulation and economic growth. However, fertility is too expected to be affected by borrowing constraints, while it also interacts with the accumulation of both types of capital. The effects of borrowing constraints under assumptions of endogenous population is exactly what chapter 5 studies.</p
Conference Paper
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The main aim of this study was to examine the validity of the catching-up hypothesis in the Libyan economy, by investigating the extent to which the capital goods imports can contribute in diffuse knowledge from abroad. As well as, estimation the impact of imported knowledge on labour productivity. In addition, it aimed to investigate whether the current pattern of knowledge transfer enhances the dual nature of the Libyan economy. By testing Arthur Lewis's hypotheses of dual sector economy in the case of Libya, estimation the impact of imported knowledge on labour productivity in the non-oil sectors in Libya. In order to achieve its objectives, the study has utilized Gregory-Hansen (1996) cointegration test, error correction model and cointegration regression estimators "FMOLS, DOLS, CCR" based on annual time series data from 1981-2017. The main findings of the study have showed a positive strong correlation between knowledge transfer index and labour productivity. Moreover, cointegration test has supported the existence of long run equilibrium relationship among the study variables. Furthermore, the index of knowledge transfer has a strong positive impact on labour productivity in the whole economy both in short and long run. However, in the non-oil sectors, the impact of the knowledge transfer index on labour productivity was weak in the short run in the one hand. On the other hand, the long run coefficients of the knowledge transfer index had a negative sign.
Conference Paper
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This study aimed to investigate the relationship between technological change and economic growth in the Libyan economy through the process of international knowledge spillover across the tow traditional channels that are foreign direct investment and imports. In order to achieve the study objectives Autoregressive Distributed Lag Model ARDL was utilized. In addition the study has tested for causality in the long using Toda & Yamamoto (1995) Approach. Furthermore, it has tested for short run causality through UECM model. The bound test results indicated to the existence of the long run equilibrium relationship among the variables. Moreover, the FDI interactive variable is associated negatively with the dependent variable in the long run , and the imports interactive variables is associated positively with it in the long run. The findings of the illustrated that there are a causality from the imports interactive variables to the dependent variable in the long run, and found no causality in the short run.
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As Mohnen (1996: 40) has indicated, research and development (R&D) externalities is a two-sided theoretical issue. Its ‘dark’ side concerns the under-investment problem caused by non-appropriability of R&D benefits. On the ‘bright’ side, R&D spillovers are a source of productivity gains. Both aspects have been invoked to justify public support for R&D investment directly and indirectly. To establish whether public support can be justified due to productivity gains from spillovers, we meta-analyse 983 productivity estimates for spillovers and 501 estimates for own-R&D from 60 empirical studies. Our findings indicate that the average spillover effect is: (i) positive but heterogenous and smaller than what is reported in most narrative reviews; (ii) usually smaller than that of own-R&D capital; (iii) too small to be practically significant when evidence with adequate statistical power is considered. Controlling for observable sources of heterogeneity and best-practice research, the meta-effect is insignificant in the full sample but significant and large among OECD firms/industries/countries. We discuss the implications of these findings for future research and public support for R&D investment.
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O capital humano é reconhecidamente considerado na literatura econômica como um fator chave para o crescimento econômico. Conforme a abordagem neoclássica, o capital humano deve ser considerado como um fator de produção adicional no processo produtivo. Assim, o processo de crescimento econômico é explicado por sua acumulação. O objetivo deste artigo é estimar a contribuição do capital humano no processo de crescimento econômico utilizando uma amostra de 68 países, no período de 1960 a 1990, considerando amostras de subgrupos de países segundo seu nível de desenvolvimento. A análise empírica é implementada utilizando a abordagem da função de produção do tipo minceriana. Os resultados obtidos mostram que os dados são consistentes com a abordagem Minceriana na modelagem do capital humano.
Article
The purpose of this study is to empirically investigate the impact of domestic and foreign R&D capital on TFP in the Eurozone countries over the period 1995–2016. The variations in the TFP level for each country are explained by the changes in both the domestic and foreign R&D capital. Total domestic R&D capital is divided into three sectors, namely business, public and higher education. This specification allows to explore the role of certain variables in the long-run evolution of TFP in Eurozone countries. The results indicate that all variables of R&D capital have a positive contribution to TFP. Foreign R&D capital appears to have higher contribution to the TFP level than domesticR&Dcapital in all estimations and specifications. The impact of higher education R&D capital is larger than that of the business and public. The estimations are related to the productivity slowdown, especially over the period of economic crisis, and the high degree of differences in income per capita and productivity levels among the Eurozone member states. The results point to the need for policy actions to increase the available domestic R&D capital in all countries and improve the technology diffusion among them within the Eurozone.
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In the production process, work is related to knowledge through a common subjective factor. For analytical purposes at the macroeconomic scale, the subjective factor can be broken down into routine work, human capital and intellectual capital. The latter is related to the learning ability of a given national economy and depends on the economic system. In the event of a decline in employment, given its cause, we distinguish three types of unemployment. Classical unemployment in the modern world occurs with the implementation of stabilization programs in response to increased inflation, Keynesian unemployment is tied to periods of asymmetric financial crises, and structural unemployment occurs together with a balance-of-payments crisis and stagflation. Due to the dominance of information and communication technologies and the subjective factor as a key creator of added value, the economic development since the 1970s can be described as the information revolution. In these conditions, companies are organized and ownership-structured in such a way as to enable the greatest possible initiative among employees. It is sensible in this regard to promote employee ownership through various development and economic policy measures. The negative side effects of the predominance of worker ownership can be eliminated by restrictive credit policy and by allowing competition between different forms of corporate ownership. An economic system is an organization of economic activity in a given national economy that operates in a specific geographical area. It includes the organization of production, distribution, exchange and consumption. It features entities that carry out these activities: households, companies and organizations that are not organized as companies (associations, etc.), the state and institutions independent of the state, as well as international economic organizations or integrations. A set of rules (especially property rights), relationships and information flow is established in the economic system (Gregory and Stuart, 2014). Activities of the economic system’s institutions and government policy simultaneously influence the accumulation of capital, the productivity, the acquisition of knowledge and the development of new types of goods or production techniques (Hall and Jones, 1999). Hence, we observe considerable differences in economic performance across different national economies (Stiglitz, 1991). In this paper we focus on the role of work and its inextricably linked knowledge in the economic system. Beginning with an outline of the employment function and continuing with a survey of the role of knowledge, employee revenues and labor market imbalances, we proceed with a critique of the position of work in the modern world, an outline of the perspective of workers’ buyouts of companies, and then provide a conclusion and references.
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Urban shrinkage in China displays a unique pattern to other contexts. Cities experiencing continuous population loss along with spatial expansion trigger a paradox in Chinese urbanization. This paper applies data from the national population census and city statistical yearbook in 2000 and 2010 for all 255 prefectural level cities to examine the relationship between the spatial expansion in shrinking cities and urban labor productivity. We find that this paradox over population loss with spatial expansion impedes the improvement of local labor productivity. To deal with the potential endogeneity problem, we also adopt the instrumental variable approach as robustness check. By using the historical population size and density in China as the instruments for our targeted variable, our main findings in OLS regressions still hold.
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İşgücü, nüfusun üretimde etkin olan bölümüdür. Nüfustaki gelişmelere bağlı olarak oluşan toplam işgücü arzı ve ekonomik koşullara göre şekillenen işgücü talebi; piyasa oluşumunun iki temel unsurudur. İşgücü piyasaları; arz ve talebinin karşılaştığı, ücretin oluştuğu sosyal bir organizasyon olarak tanımlanabilir. Tüm piyasa yapıları içerisinde işgücü piyasası; işleyişi ve özellikleri nedeniyle ekonominin diğer birimlerinden önemli ölçüde etkilenen ve bunları yüksek oranda etkileyen konumdadır. Bu nedenle üretim sürecinde ve planlamasında işgücü piyasalarının detaylı analiz edilmesi gerekmektedir. İşgücü piyasaları içerisinde; ekonominin temelini oluşturan ve diğer piyasalara çeşitli kaynaklardan katkı sağlayan tarımsal işgücü piyasasının analiz edilmesine ihtiyaç duyulmaktadır. Çünkü tarım sektöründeki doğal kaynakların ve sermaye unsurlarının kullanımında doğrudan işgücünün katkısının olması, diğer sektörlere kıyasla tarımsal faaliyetlerde işgücünün birim alanda daha yoğun kullanılması, tarım sektöründen diğer sektörlere işgücü transferlerinin gerçekleştirilmesi, tarımsal işgücünün gizli işsizlik ve yapısal işsizliğin kaynağını oluşturması gibi nedenlerle tarımsal işgücünün incelenmesi ve sınıflandırılması gerekmektedir. Ayrıca kamu kurum/kuruluşları için veri oluşumunda kullanılacak işgücü çeşitlerini belirlemek, güvenilir istatistiki verilerin elde edilmesine katkıda bulunarak planlanan projelerde ve oluşturulacak politikalarda doğru karar süreçlerine erişimi kolaylaştırmak amacıyla tarım sektöründe işgücünün sınıflandırılması gerekmektedir. Belirlenen amaçlar doğrultusunda tarım sektöründeki işgücü çeşitlerinin belirlenmesi, yapılan kavramsal tanımlamaların bir araya getirilmesi ve literatürde anlamsal bütünlüğün sağlanmasına yönelik olarak bu çalışma gerçekleştirilmiştir.
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This paper proposes a novel Lasso-based approach to handle unobserved parameter heterogeneity and cross-section dependence in nonstationary panel models. In particular, a penalized principal component (PPC) method is developed to estimate group-specific long-run relationships and unobserved common factors and jointly to identify the unknown group membership. The PPC estimators are shown to be consistent under weakly dependent innovation processes. But they suffer an asymptotically non-negligible bias from correlations between the nonstationary regressors and unobserved stationary common factors and/or the equation errors. To remedy these shortcomings we provide three bias-correction procedures under which the estimators are re-centered about zero as both dimensions (N and T) of the panel tend to infinity. We establish a mixed normal limit theory for the estimators of the group-specific long-run coefficients, which permits inference using standard test statistics. Simulations suggest good finite sample performance. An empirical application applies the methodology to study international R&D spillovers and the results offer a convincing explanation for the growth convergence puzzle through the heterogeneous impact of R&D spillovers.
Chapter
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Caveat emptor: Cross-country data on education and the labor force The role of human capital in economic development: Evidence from aggregate cross-country data
  • J Behrman
  • M Rosenzweig
Behrman, J. and M. Rosenzweig, 1994, Caveat emptor: Cross-country data on education and the labor force, Journal of Development Economics 44, 147-17 1. Benhabib, J. and M. Spiegel, 1994, The role of human capital in economic development: Evidence from aggregate cross-country data, Journal of Monetary Economics 34, 143-173.
1994) comments on TFP and R&D measurement, and the comments by Behrman and Rosenzweig (1994) on human capital measurement. l2 See the Fagerberg (1994) survey of the recent empirical growth literature
  • See
  • Griliches
See, for example, the Griliches (1992, 1994) comments on TFP and R&D measurement, and the comments by Behrman and Rosenzweig (1994) on human capital measurement. l2 See the Fagerberg (1994) survey of the recent empirical growth literature, which provides references to some of the few tested multi-equation models.