Template-type: ReDIF-Paper 1.0
Author-Name: Ziesemer, Thomas
Author-Email: ziesemer@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, Maastricht University
Title: Semi-endogenous growth models with domestic and foreign private and public
	 R&D linked to VECMs with evidence for five countries
Abstract: We present semi-endogenous growth models with productivity as functions 
	 of domestic and foreign private and public R&D. In a small country case 
	 with a Cobb-Douglas productivity production function, foreign R&D drives 
	 steady-state growth and the production function can be a long-term 
	 relation in a vector-error-correction model (VECM). Marginal 
	 productivity conditions can be long-term relations for a 
	 vector-error-correction model if the functional form is of a VES 
	 function generalising a CES function. Combining the marginal products of 
	 VES functions with recent evidence from VECMs for five countries shows 
	 that private and public R&D have a positive effect on productivity 
	 (except for France), and a negative R&D augmenting technical change. In 
	 case of a VES function, steady states with constant R&D/productivity 
	 ratios exist only for special cases of parameter restrictions, which are 
	 not supported by the evidence.
Classification-JEL: O38, O40, O41, H54, H87
Keywords: Productivity, endogenous (un)balanced growth, public R&D expenditure,
	 foreign spillover
Series: UNU-MERIT Working Papers
Creation-Date: 20200331
Number: 2020-013
File-URL: https://unu-merit.nl/publications/wppdf/2020/wp2020-013.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2020013