Research into Dynamic Lag Effect of R&D Input on Economic Growth Based on the Vector Auto-Regression Model

Abstract

According to the panel VAR model and analysis of the dynamic relationship between China’s R&D input and economic growth based on panel data from 1995 to 2013. In this paper, co-integration test and granger causality test are used to analyze the effect of three types of R&D investment on the performance of economic growth in China, including basic research, applied research and test experiment research. The impulse response function and variance decomposition are also used to analyze the time-lag effect of R&D Investment. The findings suggest that: the test development research has a significantly positive effect on the growth of per capita GDP. While there is a certain lag in the function of basic research and applied research, and the basic research lag period is longer; From the perspective of influence degree, the utility of basic research is greater than that of applied research, and the test development research has a certain effect on economic growth. Therefore, considering from the perspective of long-term development of scientific and technological strategies, the central government in China should not only maintain the total investment of R&D funds, but also pay more attention to the coordinated development of different research funding.