Role Of Economic Freedom in The Research and Development-Productivity Growth Nexus: Panel Dynamic Ordinary Least Square Evidence
Peranan Kebebasan Ekonomi dalam Mempengaruhi Penyelidikan dan Pembangunan dan Peningkatan Produktiviti: Bukti Kajian dengan Panel Dinamik Kuasadua Terkecil Biasa
Keywords:
Domestic and Foreign Research and Development, Economic freedom, Panel Dynamic OLS, Developing countriesAbstract
This study investigates the relationship economic freedom, Research and Development
both domestic and foreign, and productivity growth. The main motivation of the study
is to examine the role of economic freedom as a mediating factor of research and
development on productivity growth. We analyzed 37 selected developing countries,
with data spanning from 2000 to 2010.We adopted the model and framework
introduced Coe and Helpman (1995) whereas this model can be seen as an extension
of Mansfield’s (1984). We employed the Panel Dynamic Ordinary Least Square (PDOLS)
proposed by Stock and Watson (1993) which capture the long run relationship
and the short run relationship to analyze and estimate the model. The finding indicates
that economic freedom positively mediate both domestic and foreign R&D on
productivity growth, but the result indicates higher elasticity value of domestic R&D
comparisons to foreign R&D and the findings is concurrent with most of the past
literatures. Policy marker and government should provide or formulate policy and
ready to reduce their intervention to ensure that country is freer because economic
freedom is one of the main drivers of prosperity and growth.
Kajian ini menilai hubunagan anataran kebebasan ekonomi, Penyelidikan dan
Pembangunan (R&D) bagi dalam dan luar negara dan kadar pertumbuhan
produktiviti. Tujuan utama kajian ini adalah untuk mengkaji peranan kebebasan
ekonomi sebagai faktor pengantara bagi R&D ke atas pertumbuhan produktiviti.
Kajian ini menganalisis 37 negara-negara membangun menggunakan data dari tahun
2000 hingga 2010. Model dan rangka kerja yang digunakan adalah merujuk kepada
model yang diperkenalkan oleh Coe dan Helpman (1995) manakala model ini adalah lanjutan daripada model yang diterokai oleh Mansfield (1984). Untuk melihat
hubungan jangka panjang dan juga jangka pendek, Panel Dinamik Kuasadua Terkecil
Biasa (P-DOLS) yang dicadangkan oleh Stock and Watson (1993) digunakan.
Dapatan kajian menunjukkan bahawa kebebasan ekonomi menunjukkan hubungan
yang positif sebagai pengantara kepada R&D bagi dalam dan luar negara terhadap
pertumbuhan produktiviti. Namun, nilai keanjalan bagi R&D dalam negara adalah
lebih tinggi berbanding untuk R&D luar negara dan penemuan ini adalah selari
dengan kebanyakan kajian lepas. Oleh itu, kebebasan ekonomi adalah salah satu
faktor yang menyumbang kepada pertumbuhan produktiviti dan pembuat polisi dan
kerajaan memainkan berperanan yang penting dalam penggubalan dasar atau
campur tangan dalam aktiviti ekonomi, dimana ia akan mempengaruhi kadar
kebebasan ekonomi ini.
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