Does Dynamic Efficiency of Public Policy Promote Export Prformance? Evidence from Bioenergy Technology Sector

Abstract

This study examines how the dynamic efficiency of public policy influences the export performance of bioenergy technologies in the short and long run using panel data over the 1995–2012 period for 16 countries that are members of the OECD. Various dynamic panel framework tests to check data characteristics are performed. The study found evidence of co-movement among the series, and set up the panel vector error correction mechanism to evaluate the short- and long-run Granger-causality between the following variables: dynamic efficiency of public policy, export, and environmental policy stringency. This study highlighted positive effects of the dynamic efficiency of public policy and environmental policy efforts on exports in both the short and long run. This study proposes policy considerations based on its results.

Keywords

• bioenergy technology
• dynamic efficiency of public policy
• export performance
• panel data approach