Exploring the link between research and economic growth: an empirical study of China and USA

Kumar, Ronald R. and Stauvermann, P.J. and Patel, Arvind (2015) Exploring the link between research and economic growth: an empirical study of China and USA. Quality and Quantity: international journal of methodology . pp. 1-21. ISSN 0033-5177

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Abstract

In this paper, we explore the link between scientific and technical research and economic growth in China and USA over the sample period 1981–2012 using the extended Cobb–Douglas model with capital per worker and the quantity of scientific and technical journal articles (research publications) per worker. We examine the cointegration relationship and present the short-run and long-run results using the autoregressive distributed lag bounds procedure. Further, we examine the direction of causality between research publications per worker results and economic growth variables using the Toda and Yamamoto (J Econom 66(1–2):225–250, 1995) procedure. Our results indicate for both countries research publications per worker positively influence the output per worker both in the short-run and the long-run. The causality results for China indicate a bi-directional causality between research publications per worker and output per worker, duly emphasizing the mutually reinforcing effect. In case of USA, we note a unidirectional causation output per worker to research publications per worker indicating that output Granger cause research publications.

Item Type:	Journal Article
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HA Statistics
Divisions:	Faculty of Business and Economics (FBE) > School of Accounting and Finance
Depositing User:	Ronald Kumar
Date Deposited:	08 Apr 2015 03:26
Last Modified:	27 Apr 2016 23:39
URI:	https://repository.usp.ac.fj/id/eprint/8180

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