The role of research and development and absorption capacity in the total factor productivity of selected developing countries
Message:
Abstract:
The purpose of this study was to investigate the potential threshold effects among human capital, R&D and total factor productivity in selected developing countries over the 1996-2013 periods. In doing so, a panel smooth transition regression model was applied. The results indicated a nonlinear relationship among variables under investigation and propose two regime model and a threshold of 3.40. In the first regime, variables namely costs of research and development, human capital and good governance had significant and positive impact and government consumption expenditures and technology exports had significant and negative impact on total productivity. In the second regime, with transition to a higher level of human capital, the cost of R&D, human capital, good governance and government consumption expenditures had significant and positive effect and export of technology had a significant and negative impact on total factor productivity. In fact, with transmission to the higher level of human capital index, the sign of government consumption expenditures is changed and the negative impact of technology exports has been reduced. However, the impact of costs of research and development, human capital and good governance has been increased. According to the results, human capital index had the most significant role in increasing total factor productivity, so this study suggested spending more share of GDP on R&D and human capital indicators.
Language:
Persian
Published:
Qurterly Journal of Research and Planing in Higher Education, Volume:22 Issue: 3, 2016
Pages:
37 to 62
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