What do we know about R&D spillovers and productivity? Meta-analysis on heterogeneity and statistical power

Endogenous growth theory and the knowledge capital model predict that research and development (R&D) investment is associated with increasing returns and positive externalities. These insights have informed public support for R&D investment directly and indirectly. We aim to establish where the balance of the evidence lies, the extent to which the evidence has adequate statistical power, and which factors may explain the variation in the empirical findings. Drawing on 983 spillovers and 501 own-R&D effect-size estimates from 60 empirical studies, we find that the average productivity effect of spillovers: (i) is smaller than what is reported in most narrative reviews; (ii) is even smaller when only adequately-powered evidence is considered; (iii) differs by spillover types; and (iv) is not larger than that of own-R&D. We also report that the percentage of adequately-powered evidence is low (30%-55%). We highlight the implications of these findings for future research and public policy design

Government education expenditures and economic growth: a meta-analysis

Using a sample of 237 estimates drawn from 29 primary studies, we conduct a hierarchical meta-regression analysis that examines the association between economic growth and government expenditure on education. We find that the effect of government education expenditure on growth is positive for developed countries. However, when the evidence pertains to less developed countries (LDCs), we find a statistically insignificant association. We also examine the heterogeneity in empirical results and found that factors such as econometric specifications, publication characteristics as well as data characteristics explain the heterogeneity in the literature. We find no evidence of publication selectivity

Income Inequality and Subjective Wellbeing: Panel Data Evidence from China

Using four waves of longitudinal data from the China Family Panel Studies (CFPS), we examine the effects of income inequality on subjective wellbeing (SWB). We take a dual approach in measuring income inequality, and thus, we examine the effects of inequality using province-level Gini coefficient as well as between-group inequality or identity-related inequality defined as the income gap between migrants without urban household registration identity (hukou) and urban residents. We find negative effects of both province-level income inequality and between-group income inequality on SWB, measured by life satisfaction. Our results also show that the effects of income inequality on SWB is stronger for rural hukou residents compared to urban hukou residents. These findings are robust to alternative ways of measuring SWB and income inequality. In addition, we find evidence suggesting that neighbourhood trust is an important channel through which income inequality operates to reduce SWB. We suggest policies that promote trust in communities with high inequality with a view of addressing the negative effects of inequality on SWB

Sustainability and outreach: a comparative study of MFIs in South Asia and Latin America and the Caribbean

Previous studies indicate that microfinance institutions (MFIs) in Latin America and the Caribbean (LAC) have different operational strategies to MFIs in South Asia (SA). Given the recent emphasis placed on the feasibility of MFIs to achieve the dual goals of outreach and sustainability concurrently, we examine and compare the relationship between sustainability and outreach of MFIs in LAC with MFIs in SA. Our results indicate that trade-offs exist between outreach and sustainability in both regions. However, the severity of trade-off is dependent on which goal MFIs decide to focus on in each region

Social Capital Inequality and Subjective Wellbeing of Older Chinese

Using longitudinal data from the China Family Panel Studies (CFPS), this study provides insights on comparative wellbeing outcomes for older people who are institutionally segregated into clusters that produce uneven social capital. We present the first study that examines how institutionalized social capital inequality,measured by the social capital gapgenerated by hukou(household registration) statusin China,affects the wellbeing of older people. Our results showthat high levels of social capital inequality are associated with lower subjective wellbeing, measured by life satisfaction. This general conclusion is robust to a number of sensitivity checks including alternative ways of measuring subjective wellbeing and inequality. We also find that the negative relationship between social capital inequality and subjective wellbeing is strongest for people with a non-urban hukouliving in urban areas.Our findings highlight the need for policies aimed at narrowing the social capital gap and the dismantling of institutional structures that hinder upward social capital mobility

What do we know about R&D spillovers and productivity? Meta-analysis evidence on heterogeneity and statistical power

As Mohnen (1996: 40) has indicated, research and development (R&D) externalities is a two-sided theoretical issue. Its ‘dark’ side concerns the under-investment problem caused by non-appropriability of R&D benefits. On the ‘bright’ side, R&D spillovers are a source of productivity gains. Both aspects have been invoked to justify public support for R&D investment directly and indirectly. To establish whether public support can be justified due to productivity gains from spillovers, we meta-analyse 983 productivity estimates for spillovers and 501 estimates for own-R&D from 60 empirical studies. Our findings indicate that the average spillover effect is: (i) positive but heterogenous and smaller than what is reported in most narrative reviews; (ii) usually smaller than that of own-R&D capital; (iii) too small to be practically significant when evidence with adequate statistical power is considered. Controlling for observable sources of heterogeneity and best-practice research, the meta-effect is insignificant in the full sample but significant and large among OECD firms/industries/countries. We discuss the implications of these findings for future research and public support for R&D investment

Does government size affect per-capita income growth? A Hierarchical meta-regression analysis

Since the late 1970s, the received wisdom has been that government size (measured as the ratio of total government expenditure to GDP or government consumption to GDP) is detrimental to economic growth. We conduct a hierarchical meta-regression analysis of 799 effect-size estimates reported in 87 primary studies to verify if such assertion is supported by existing evidence. Our findings indicate that the conventional prior belief is supported by evidence mainly from developed countries but not from less developed countries (LDCs). We argue that the negative relationship between government size and economic growth in developed countries may reflect endogeneity bias

Social Capital Inequality and Subjective Wellbeing of Older Chinese

Using longitudinal data from the China Family Panel Studies (CFPS), this study provides insights on comparative wellbeing outcomes for older people who are institutionally segregated into clusters that produce uneven social capital. We present the first study that examines how institutionalized social capital inequality, measured by the social capital gap generated by hukou (household registration) status in China, affects the wellbeing of older people. Our results show that high levels of social capital inequality are associated with lower subjective wellbeing, measured by life satisfaction. This general conclusion is robust to a number of sensitivity checks including alternative ways of measuring subjective wellbeing and inequality. We also find that the negative relationship between social capital inequality and subjective wellbeing is strongest for people with a non-urban hukou living in urban areas. Our findings highlight the need for policies aimed at narrowing the social capital gap and the dismantling of institutional structures that hinder upward social capital mobility