Date of Award
Doctor of Philosophy
Dr. Eskander Alvi
Dr. Debasri Mukherjee
Dr. Kevin Corder
This dissertation contains three essays on research and development (R&D): determinants, the role of fiscal policy, and the effects of government R&D on economic growth. The first essay is an attempt to study the determinants of aggregate R&D expenditure in both emerging and developed countries with special attention to patent rights protection and technology transfer. The main findings are: (1) patent protection helps R&D but overly burdensome protection can limit access to new innovations and thus slow down the rate of research and development, and (2) technology transfer, through imports and FDI, has a positive and significant effect only if the country depends heavily on FDI and imported intermediate goods.
The second essay presents a simple model of fiscal policy and business investment in research and development. In the theoretical model we study the effect of various fiscal variables on business R&D. On the empirical side, the fixed effects two stage least squares model, applied to a sample of 14 high-income OECD countries, shows the following effects on business R&D: (1) taxes on income and profits have the expected positive effect, (2) budget imbalances viathe interest rate channels has a negative effect, (3) government capital expenditure has a positive effect, and (4) taxes on goods and services are not significant.
The third essay contains an empirical study to estimate the social rate of return to government and business R&D when the former is disaggregated into civil and defense R&D. Using a GMM method, we estimate a dynamic panel data model that consists of 13 high-income OECD countries. The results show that contrary to most empirical studies that report a social rate of return to total government R&D expenditure to be insignificantly different from zero, this paper finds that civil government R&D expenditure has a positive and significant effect on GDP per capita growth. Furthermore, we find that both civil government R&D for economic development programs and for general university funds have positive and significant effect on economic growth, while civil government R&D for health and environment programs is found to be insignificant. Defense R&D is found to have either insignificant or negative effect on economic growth.
Eid, Ashraf Galal Mohamed, "Determinants of Aggregate R&D, Role of Fiscal Policy, and the Effects of Government R&D on Economic Growth" (2004). Dissertations. 1094.