Abstract
Growth effects of R&D, especially in the service sector, are focused in this paper. By using a Romer type growth model with a R&D sector and a final goods retailing sector, we point out growth effects from the labor share of the R&D sector and the service sector. From the empirical analysis on the steady state equation, a positive per-capita income contribution from service sector’ GDP share is put out at light as well as the number of researcher is here indicated for its weight on understanding the subject. And for world growth data we apply principal component analysis: a strong causality effect among per-capita GDP, R&D investment, and service sector share is deduced.
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