Does R&D Matter for Economic Growth or Vice-Versa? An application to Portugal and other European Countries

Authors

  • João Filipe Santosa Instituto Superior Técnico, Universidade de Lisboa Av. Rovisco Pais, 1049-001 Lisboa
  • Margarida Catalão-Lopes CEG-IST and Instituto Superior Técnico, Universidade de Lisboa Av. Rovisco Pais, 1049-001 Lisboa

DOI:

https://doi.org/10.14738/abr.23.194

Abstract

Significant research has studied the impact of Research and Development (R&D) on Gross Domestic Product (GDP) at the country level.  However, few studies consider the possibility that a country’s GDP can also be a driver for R&D. This paper investigates the causal relationship linking R&D and growth in a sample of European Union (EU) countries, with an emphasis on Portugal. A causal relationship from growth to R&D can only be proven for France and Spain, whereas the inverse causality only seems to exist for The Netherlands. The co-integration results question the existence of a long-run relationship between R&D and GDP.

Keywords: R&D, Economic growth, Co-integration, Granger causality,  European countries, Portugal.

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Published

2014-06-30

How to Cite

Santosa, J. F., & Catalão-Lopes, M. (2014). Does R&D Matter for Economic Growth or Vice-Versa? An application to Portugal and other European Countries. Archives of Business Research, 2(3), 1–17. https://doi.org/10.14738/abr.23.194