Working Paper #2019-029
Japan's productivity and GDP growth: The role of GBAORD, public and foreign R&D
We analyse the dynamic interaction of Japan's total factor productivity
(TFP), GDP, domestic and foreign private and public R&D as well as
mission-oriented R&D, GBAORD, in a cointegrated VAR for Japan with data
from 1988-2014. Analysis of effects of permanent shocks shows that (i)
public R&D, unlike GBAORD, encourages private R&D and TFP, and has high
internal rates of return. (ii) Japan's public and private R&D have a
statistically significant positive effect on foreign private and public
R&D stocks and vice versa. (iii) After transitory GDP shocks, public and
private R&D are counter-cyclical and GBAORD is pro-cyclical in Japan.
- Keywords
-
- R&D
- productivity
- growth
- spillovers
- vector-auto-regression (VAR)
- JEL codes
-
- F43
- O19
- O47
- O53
Cite this as
APA 7th ed.Ziesemer, T. (2019). Japan's productivity and GDP growth: The role of GBAORD, public and foreign R&D (UNU-MERIT Working Paper No. 2019-029). UNU-MERIT. https://unu-merit.nl/publications/working-papers/abstract/?id=8316