Output Convergence and the Role of Research and Development

UNCP Author/Contributor (non-UNCP co-authors, if there are any, appear on document)
Dr.. Mohammad Ashraf, Professor of Economics (Creator)
Institution
The University of North Carolina at Pembroke (UNCP )
Web Site: http://www.uncp.edu/academics/library

Abstract: We ask whether failure to control for research and development (R&D) activity in an output convergence regression affects the coefficient estimates of initial output. We focus on output convergence to an economy's own steady-state growth path using time series regression framework and convergence across economies using panel estimation. We use data for the 30 member countries of the Organization for Economic Co-operation and Development (OECD) and US state-level real per capita output and per capita patents. The results indicate that after controlling for R&D activity the coefficient estimates increase in magnitude (in absolute terms) and in significance levels. Furthermore, the results are not sensitive to the dataset used or the estimation procedure.

Additional Information

Publication
Annals of Economics and Finance
Language: English
Date: 2010
Keywords
Output Convergence, Convergence, R&D, Growth, Output, Omitted Variable Bias, Panel Estimation, Panel Unit Root Tests