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The innovation- growth link in OECD countries: Could other macroeconomic variables matter?
- Source :
- Technology in Society. 51:113-123
- Publication Year :
- 2017
- Publisher :
- Elsevier BV, 2017.
-
Abstract
- This study investigates the Granger causal relationships between innovation, economic growth, information and communication technology (ICT) infrastructure, government consumption expenditure, gross capital formation, foreign direct investment, and trade openness. Using panel data from 32 high-income OECD countries from 1970 to 2016 and panel cointegration techniques, results show that these variables are cointegrated. The Granger causality tests further confirm that, taking other variables into account, there is bi-directional causality between innovation and economic growth in the long run. Moreover, both economic growth and innovation are generally impacted in the long run by the other variables that we consider. The short-run causality results reveal a diverse pattern of short-run adjustment dynamics among the variables including the possibility of feedback among some of them. Important policy implications for sustainable economic growth and higher innovation suggest elevating government consumption expenditure, increasing capital formation, further opening of countries' economies to trade, as well as improving ICT infrastructure.
- Subjects :
- Macroeconomics
Consumption (economics)
Sociology and Political Science
Cointegration
05 social sciences
Human Factors and Ergonomics
International economics
Foreign direct investment
Education
Capital formation
Granger causality
0502 economics and business
Innovation economics
Economics
Openness to experience
050207 economics
Business and International Management
050203 business & management
Panel data
Subjects
Details
- ISSN :
- 0160791X
- Volume :
- 51
- Database :
- OpenAIRE
- Journal :
- Technology in Society
- Accession number :
- edsair.doi...........e24e68a0c031521bb94c14ff5b3f4159
- Full Text :
- https://doi.org/10.1016/j.techsoc.2017.08.003