This article employs dynamic panel techniques to test the effects of public policies on export of solar energy technologies. The data were from 18 Organization for Economic Cooperation and Development (OECD) countries for the period 1992-2008. Taking into account the results of structural break and cross-sectional dependence tests, the study carried out panel unit-root and cointegration tests. The panel vector autoregression (VAR) model in the first difference was used to test the causal relationship among the variables in question. To deal with the simultaneity problem introduced by differences and the existence of heteroskedasticity in the genuine error across countries, panel generalized method of moments (GMM) estimations were conducted. Then, on the basis of the difference in GMM estimation results, causality was determined by running Wald tests on the coefficients of variables. The results indicate that there is a positive short-term linear causality running from the contribution of solar energy to total energy supply to export, and that there is a negative short-run linear causality running from research and development (R&D) expenditures to export. There is bidirectional causality between export and the real gross domestic product (GDP) in the short run. We propose the adoption of policies based on the results of the study.
Abstract
Ⅰ. Introduction
Ⅱ. Literature Review
Ⅲ. Empirical Methodology
Ⅳ. Analysis
Ⅴ. Conclusion
Appendix
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