Positive and Negative Effects of Research and Development

Mohd Shahidan Shaari, Diana Nabila Chau Abdullah, Nur Salimah Binti Alias and Nor Syamimi Mohamed Adnan
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Mohd Shahidan Shaari: School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis, Perlis, Malaysia,
Diana Nabila Chau Abdullah: Faculty of Business, Economics and Accountancy, Universiti Malaysia Sabah, Sabah, Malaysia
Nur Salimah Binti Alias: School of Human Development and Technocommunication, Universiti Malaysia Perlis, Perlis, Malaysia,
Nor Syamimi Mohamed Adnan: School of Human Development and Technocommunication, Universiti Malaysia Perlis, Perlis, Malaysia.

International Journal of Energy Economics and Policy, 2016, vol. 6, issue 4, 767-770

Abstract: This study aims to examine the effects of research and development expenditure on economic growth and carbon dioxide (CO2) emission in the panel data for the period of 1996-2011 from five nations (Germany, Russian Federation, United Kingdom, United States and Canada). The panel co-integration was conducted and the results show that there is co-integrated relationship among the variables (research and development [R&D], gross domestic product [GDP], energy use and CO2 emission). Then the fully modified ordinary least squares (FMOLS) test was performed and the findings explain that energy use and R&D are the determinants of GDP. Results from FMOLS show that energy use and R&D are the determinants of GDP. Energy use and GDP are the determinants of CO2 emission. Results from dynamic ordinary least squares show that R&D is important to boost economic growth while energy use, GDP and R&D can have deleterious effects on CO2 emission. Therefore, it is important to control the R&D expenditure to balance economic growth and environmental conservation.

Keywords: Research and Development; Economic Growth; Carbon Dioxide Emission (search for similar items in EconPapers)
JEL-codes: O32 Q40 Q50 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2016-04-13

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