| Abstract [eng] |
The main purpose of this master thesis is to analyze peculiarities of public expenditure on research and experimental development (R&D) and to study the impact of public expenditure on R&D activities on economic growth, taking into account the related circumstances of the modern economy. The work consists of three main parts: the analysis of scientific literature, the research methodology and the research results, conclusions and recommendations. Literature analysis reviews the essence and content of public expenditure on R&D, the theoretical model of the impact of this expenditure on economic growth, and most common evaluation methods and recent scientific studies concerning the topic. After the literature analysis, research design was set up, research methods and indicators were selected. The main purpose of empirical research was to investigate the impact of public expenditure on R&D and other identified factors related to R&D activities on economic growth. Overall, eight economic indicators were involved in the research. Annual statistical data on 28 European Union (EU) states in the period of 2010-2019 was selected. Correlation and multiple regression analysis of panel data together with Granger causality test were applied to get most information from the data. The performed research revealed that neither public expenditure on R&D nor its annual growth rates have a statistically significant impact on economic growth over the course of one year. However, public expenditure on R&D has been identified as the cause of economic growth after the lag period of three years. This may be due to the fact that countries under analysis have different levels of economic development. In some countries, the impact of public R&D spending on economic growth may be slower, while in others it may be faster. Regarding other factors related to R&D activities, labour productivity has been found to have a positive effect on economic growth and economic complexity has been found to have a negative effect. It was also found that the growth of labour productivity and the growth of human social development have a positive effect on economic growth, while the annual change in the number of start-ups has a negative effect. It was also identified that there are two-way causal links between economic growth and labor productivity, economic complexity, and human social development. The conclusions and recommendations summarize the main concepts of literature analysis as well as the results of the empirical research. The author believes that the results of the study could give useful guidelines to the government institutions which form strategies for public expenditure on R&D. For further scientific studies on the topic, it would be recommended to group EU states according to their level of economic development as it can have a significant impact on the efficiency of public expenditure on R&D. |
