Czech regions: Relationship between Research and Development expenditure and economic strength
Keywords:
Correlation, GDP, R&D Expenditure, Czech RepublicAbstract
Purpose of the article The economic strength of a country can be measured through the GDP. R&D expenditure is one of the economic indicators, which influence the economic performance of the country. The difference in the level of GDP and R&D expenditure should be kept in sustainable limits for the welfare of the country as a whole. The analysis of the relationship between GDP and R&D expenditure can serve as the basis for the fiscal policy on a regional level.
Methodology/methods To test the autocorrelation of time series, the Durbin-Watson test used. The correlation analysis found to be suitable for searching for the influence of the selected variables.
Scientific aim The aim of the article is to analyse the interdependence of R & D expenditure and of the GDP of individual regions of the Czech Republic in the period 2005 – 2017.
Findings The Durbin Watson test excluded the autocorrelation of the selected variables. Authors performed statistical testing and correlation analysis. The correlation analysis did not confirm the correlation between R & D expenditure and regional GDP. An only slightly positive correlation was identified in the Central Bohemia region with a GDP + 1 prediction indicator. It is clear from the results that the selected indicators are almost independent of each other.
Conclusions The relationship R & D expenditure and GDP is seen as a source of growth in the standard of living of the population in many professional works. This research did not show the interdependence of R & D expenditures and GDP in the regions of the Czech Republic. Despite the fact that delays of individual indicators were observed by one or two years respectively. The dependence of R & D expenditure growth on GDP was not confirmed.
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