[Journal:] The Open Economics Journal [ISSN:] 1874-9194 [Publisher:] Bentham Open [Place:] Sharjah [Volume:] 2 [Year:] 2009 [Pages:] 80-86
This paper assesses whether the linkages between R&D, human capital and productivity growth in a panel of EU manufacturing industries over the period 1980-2002 are affected by a critical level of human capital. To employ our data in an efficient manner, the study makes use of a dynamic threshold-based analysis, which determines endogenously the sample splitting procedure. The estimates indicate the presence of a threshold level based on the size-level of human capital. Countries with human capital levels above the threshold receive higher productivity growth benefits from higher R&D.
productivity growth R&D Human capital Threshold effects Manufacturing industries EU countries Panel data