THE SPATIAL ECONOMIC IMPACT OF R&D EXPENDITURES: A SPATIAL PANEL DATA ANALYSIS OF GERMANY

OpenAlex · English

The paper examines the impact of R&D expenditures on gross domestic product (GDP) at the NUTS 1 level in Germany. Using the spatial panel data analysis method, the existence of spatial dependencies among regions was investigated, and the findings revealed positive spatial effects. Based on the tests conducted, the Random Effects Spatial Error Panel Data Model was identified and accepted as the appropriate model for this paper. It was determined that a one-unit increase in R&D expenditures leads to a 7% increase in GDP at a 1% significance level. Furthermore, the model was found to have an explanatory power of 63%, demonstrating that it is both statistically significant and reliable. The paper is significant as it emphasizes the multiplier effect that highlights the spatial impacts of R&D expenditures. Additionally, the heterogeneity among regions was found to have a meaningful spatial relationship with economic performance, leading to the development of an econometric model proposal in this context.