Skip to main content

Table 9 Results of test from error correction model

From: Does innovation promote economic growth? Evidence from European countries

Countries Granger causality test between
PAR and GDP PAN and GDP RDE and GDP
Short-run Long-run Short-run Long-run Short-run Long-run
Austria 4.90*/4.16* −3.39*/−1.33 8.97*/−1.90 −1.79/−1.03 0.634/6.37* −0.25/−4.17*
Belgium 18.9*/1.21 −2.46/−0.53 3.62**/1.48 −2.12/1.13 3.55*/0.28 NA/NA
Czech Republic 1.62/4.35* NA/NA 3.27**/0.74 NA/NA 1.17/4.91* NA/NA
Denmark 0.42/4.32** NA/NA 3.16**/9.69* −1.83/−3.21** 20.6*/0.11 −6.03*/−2.67
Finland 4.32*/0.31 NA/NA 0.57/5.29* −1.20/2.03 4.39*/1.08 −1.56/1.75
France 3.19**/0.60 −2.83/−1.12 13.8*/2.57 2.91/−1.41 3.93*/2.00 NA/NA
Germany 3.34**/1.01 −3.27*/−0.82 0.72/12.2* −4.03*/−2.92** 9.32*/1.24 NA/NA
Greece 6.73*/0.12 NA/NA 1.09/8.64* NA/NA –/– –/–
Hungary 1.51/5.58* NA/NA 4.50*/5.28* −2.03/−1.57 4.77*/1.94 NA/NA
Ireland 0.63/3.95* NA/NA 3.25**/5.63* NA/NA 0.33/4.33 NA/NA
Italy 6.74*/0.71 NA/NA 0.49/1.87 NA/NA 5.09*/1.50 NA/NA
Netherlands 3.26**/0.90 NA/NA 3.64**/2.23 −2.38/−1.57 0.34/4.44* −2.52/−0.33
Norway 2.83/14.5* −0.85/−5.06* 1.62/23.8* NA/NA 4.72*/0.79 0.30/−1.60
Poland 14.3*/5.46* NA/NA 0.67/1.42 NA/NA 3.97*/1.78 NA/NA
Portugal 5.19*/1.20 −3.69***/1.28 4.09**/16.8* NA/NA 10.3*/0.21 NA/NA
Romania 5.10*/0.86 NA/NA 3.69*/2.07 NA/NA 0.80/5.37* −4.41/−3.07**
Spain 4.21*/4.56* NA/NA 5.42*/0.96 NA/NA 0.23/7.71* −1.73/−3.03**
Sweden 8.93*/13.5* −4.10*/−2.33 7.15*/0.13 NA/NA 3.36*/2.28 NA/NA
United Kingdom 2.99**/0.33 NA/NA 10.1*/3.81** −4.69*/−2.97** 3.69*/1.94 −1.16/−2.19
European panel 5.91*/10.1* −6.09*/−2.60 0.45/6.61* −6.23*/−2.38 2.84*/6.08* −5.34*/−1.14
  1. GDP is per capita economic growth; PAR is the number of patents by residents; PAN is the number of patents by non-residents; and RDE is research and development expenditure. The short-run causality is detected through the Wald statistics, while long-run causality is detected through the statistical significance of error correction term. For both short-run and long-run, the first value represents GDP as the dependent variable and the second value represents innovation (PAR/PAN/RDE) as the dependent variable
  2. *Indicates the statistical significance at 5% level; **indicates the statistical significance at 10% level