To Schumpeter or not to Schumpeter, That is the Endogenous Growth Question: An Empirical Approach to Post-Soviet Countries

Author: 
Date created: 
2020-04-14
Identifier: 
etd20778
Keywords: 
Macroeconomic growth
Schumpeterian theory
Patents
R&D investment
R&D industry spread
Inverted-U
Abstract: 

This paper examines three empirical predictions of the Schumpeterian endogenous growth theory (1) the positive relation between innovation and growth rate, (2) the inverted U-shape relationship between competition and innovation, and (3) the positive effect of industry R&D spread on R&D investment. I examine the case of 10 Post-Soviet countries over the period 1996-2016. My analysis considers both aggregate and firm-level data while using a panel data methodology with fixed effects approach. My findings provide evidence of a positive relation of R&D investment, a measure of innovation, with growth. Meanwhile, there also appears to be a "stepping on toes" effect on growth with the R&D share, a measure of innovation commonly used in the theoretical literature. I find no evidence of an inverted-U relation at the industry-level. Instead, I find a positive relation between the industry spread of R&D investment and the firm's own investment. This finding suggests catching-up decisions by laggard firms and continued investment by lead firms.

Document type: 
Thesis
Rights: 
This thesis may be printed or downloaded for non-commercial research and scholarly purposes. Copyright remains with the author.
File(s): 
Supervisor(s): 
Fernando Aragon
Department: 
Arts & Social Sciences: Department of Economics
Thesis type: 
(Thesis) M.A.
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