Research and Development Expenditure and Economic Growth

What is it about?

This article provides an empirical analysis of the relationship between research and development (R&D) expenditures and economic growth, and determines whether this relationship differs with respect to the degree of development. In this regard, the study utilises data from 52 countries from 1996 to 2010 and employs a dynamic panel data model. The research finds that R&D expenditure has a positive and significant effect on economic growth for all countries in the long run.

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Why is it important?

Our findings show that research and development expenditure has a positive and statistically significant impact on economic growth which gives a vital policy imlication to countries that if they want sustainable economic growth they should invest in research and technology.