Science and Technology Investment and Economic Growth:the Nonlinear Relationship of Threshold
Zhang Youzhi1,2
1. School of Economics and Management, Xi'an University of Technology, Xi'an 710054, China; 2. School of Economics Management, Xi'an Shiyou University, Xi'an 710065, China
Abstract：This paper analyzes the relationship between science and technology investment and economic growth, applying GDP per capita as a proxy of economic growth, meanwhile using financial technology investment, R& D expenditure as a proxy of investment in science and technology. The results show that: the relationship of science and technology investment and economic growth is nonlinear, and suitable to use nonlinear smooth transition models to fit. There are two thresholds on fiscal expenditure of science and technology and economic growth. Conversion variable of the model is the rate of economic growth of previous one period. When the speed of economic growth dropped quickly or rose quickly, the nonlinear influence of fiscal expenditure on science and technology on economic growth will appear. There are one threshold on R& D expenditure and economic growth. Conversion variable of the model is the rate of economic growth of previous one period, too. When the speed of economic growth rose quickly, the nonlinear influence of R& D expenditure on economic growth will appear
2014, 
