Does Scientific and Technical Research Reduce Macroeconomic Volatility?

21 Pages Posted: 11 Jan 2018

Date Written: January 2018


This paper explores whether conducting scientific and technical (S&T) research reduces the volatility of output growth. The paper finds robust evidence that output volatility is significantly lowered by a country's production of S&T publications. The results show that the effect of S&T publications on output volatility is particularly strong in middle‐income, OECD and other high‐income countries. However, for East‐Asian, low‐income and sub‐Saharan African countries the effect is either weak or absent. These results provide strong evidence that not only OECD and other high‐income countries are actively engaged in S&T research, emerging developing countries are also conducting S&T research, which is effective in reducing output volatility. The results are robust to adding a host of control variables, various subsamples and different estimation techniques.

Keywords: economic development, output volatility, scientific and technical publications

JEL Classification: O11, O33, E32

Suggested Citation

Tang, Sam Hak Kan, Does Scientific and Technical Research Reduce Macroeconomic Volatility? (January 2018). Bulletin of Economic Research, Vol. 70, Issue 1, pp. E68-E88, 2018, Available at SSRN: or

Sam Hak Kan Tang (Contact Author)

University of Western Australia ( email )

Nedlands, Western Australia 6907

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