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- © Vilnius University, 2002-2022
- © Brno University of Technology, 2002-2022
- © University of Latvia, 2002-2022
Article
THE EFFECT OF HUMAN CAPITAL, R&D AND PATENTS ON ECONOMIC GROWTH. EVIDENCE FROM HETEROGENEOUS CROSS-COUNTRY DATA
Corina Saman
ABSTRACT: The present study investigates the short-run dynamics among human capital, R&D and innovation and per capita income growth in the panel of EU countries for the period 2000-2017. One of the reasons that previous literature on cross-country found inconclusive or contrary results could be omitted variables, unobserved heterogeneity, and cross-sectional dependence that are not controlled for. This paper control for these problems using panel models that assume a common factor structure. The heterogeneous-effects dynamic model estimates of the elasticities of average years of schooling, R&D expenditures, and the number of patents are significantly positive at 0.39, 0.23, and 0.009, respectively.
KEYWORDS: growth, human capital, innovation
JEL classification: O3, O15, I25, O12, O47, C23