Sustainable Economic Growth Based on R&D Amplification and Technological Content of Exports. Evidences from Romania and The V4 Economies

Abstract

A vast body of literature recognizes the importance of exports as a driver of economic growth. The increasing share of more sophisticated exports gave birth to the idea that the composition of exports, and not just exports per se, could be crucial for economic dynamics. The aim of this paper was to estimate the relative importance of exports with different technological content on economic growth in Romania and V4 economies, considering R&D (Research and Development) expenditure as a predictor of the pattern of these exports. We used a panel analysis on a data set covering the period of 1995-2017 for Romania and V4 economies. The overall results outline significant differences among selected countries in terms of how the composition of exports influenced economic growth in selected countries. In addition, significant differences were found among selected countries in how R&D expenditure influenced the composition of exports. This paper has clearly shown that the composition of exports has different effects on economic growth in selected countries, mostly explainable by country-specific factors. At the same time, the R&D activity, as the main input in the innovation process, can determine the pattern of the structure of exports. The conclusions of such research could become useful tools in shaping macroeconomic policies focused on sustained growth and long-term economic development, especially in countries concerned about improving their status in the global value chain.

Nexus between Export ?Diversification and Economic ??Growth: A Case Study of ?Afghanistan

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Synergistic effect of R&D and exports on performance in US manufacturing industries: high-tech vs low-tech

“…Exporting firms are more productive than non-exporting firms because they have a progressive drive toward R&D investment, which is a significant and positive determinant of export performance (Makrini, 2016). Further, R&D investment can also affect the pattern and structure of exports in the innovation process for its returns and market growth (Burciu et al, 2020;Véganzonès-Varoudakis and Plane, 2019). As such, it is expected that both factors working together will contribute to a firm's overall performance.…”

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