UNU-MERIT Working Papers Series
Semi-endogenous growth models with domestic and foreign private and public R&D linked to VECMs
Thomas Ziesemer #2019-025We present semi-endogenous growth models with total-factor productivity
as functions of domestic and foreign private and public R&D. In a small
country case with a Cobb-Douglas TFP production function, foreign R&D
drives steady-state growth and the production function can be a
long-term relation in a vector-error-correction model. Marginal
productivity conditions can be long-term relations for a
vector-error-correction model if the functional form is of a
Cobb-Douglas type or a CES function generalised to a VES function. In
case of a VES function, steady states exist only for special cases of
parameter restrictions.
Keywords: Productivity, endogenous (un)balanced growth, public R&D
expenditure, foreign spillover
JEL Classification: O38, O40, O41, H54, H87
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