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An International perspective on the productivity paradox – by Alain ...

An International perspective on the productivity paradox – by Alain ...

NZL’s intensity in

NZL’s intensity in government and business R&Dis lowest among advanced OECD countries4.543.533.93.63.43.22.92.82.7OthersHigher education R&DGovernment intramural R&DBusiness R&DGross R&D2.522.3 2.32.01.91.8 1.81.7 1.61.51.4 1.310.50Note: 2009 except for Australia’s value for government and higher education R&D is that of 2008.Source: OECD Main Science and Technology Indicators14

The augmented Solow regression indicates a significantand positive contribution by R&D to per capita incomeDependent variable: (1) (2) (3) (4)GDP per capitaInvestment rate 0.2101*** 0.2182*** 0.2164*** 0.2041***(0.0222) (0.0210) (0.0206) (0.0227)Human capital (Years 0.3127*** 0.2151*** 0.2323*** 0.2623***of schooling) (0.0713) (0.0602) (0.0570) (0.0703)Population growth -0.0006 0.0203 0.0191 0.0030(0.0303) (0.0258) (0.0254) (0.0275)Business R&D/GDP0.0351*** 0.0319*** 0.0393***(0.0116) (0.0111) (0.0145)Trade OpenessWeighted sum ofMarket and Supplier0.0478**(0.0195)0.0789***(0.0199)AccessCountry fixed effects Yes Yes Yes YesTime fixed effects Yes Yes Yes YesR squared 0.9999 0.9999 0.9999 0.9999N 560 509 509 42815

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