Advances in Management and Applied Economics

Do Scientific Products Contribute to the Level of Output? Empirical Evidence from the European Union Countries

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  • Abstract

    The relationship between scientific products and the level of productivity or output has become a hotly debated issue in recent years. However, the number of existing studies which examine this relationship is very low and hence more analyses are needed in order to reach conclusive results. This paper investigates the effect of scientific products on the level of gross domestic product (GDP) per capita for 15 European Union coutries over the period 1981-2011 by using Autoregressive Distributed Lag (ARDL) methodology to cointegration developed by Pesaran (1997), Pesaran and Smith (1998), Pesaran and Shin (1999) and Pesaran et al. (2001). According to the results of the empirical analysis, scientific publications have a statistically significant effect on the level of GDP per capita only in France and Sweden. In France the effect of scientific publications on the level of GDP per capita is negative in the short-run and this effect becomes positive in the long-run. However, in Sweden scientific publications have a positive impact on the level of GDP per capita both in the short-run and the long-run.