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R&D Policies and Endogenous Growth: A Dynamic General Equilibrium Analysis of the Case for Canada *
Author(s) -
Ghosh Madanmohan
Publication year - 2007
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/j.1467-9361.2007.00381.x
Subject(s) - economics , subsidy , endogenous growth theory , productivity , general equilibrium theory , incentive , capital (architecture) , monetary economics , international economics , macroeconomics , microeconomics , human capital , market economy , history , archaeology
Abstract This paper utilizes a general equilibrium R&D model of endogenous growth via increasing capital variety to examine the impact of alternative policies on productivity and economic growth. The model is calibrated using data from the Canadian economy. Findings reveal that direct incentives such as subsidies to R&D activities would have the highest productivity impact on the Canadian economy, that an increase in subsidies to the users of R&D capital (output) would have a positive but smaller impact, and trade liberalization would have minimal effects on productivity growth via its impact on international R&D spillovers.