The Contribution of R&D Expenditure to Economic Growth in Developing Economies

John Inekwe

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, 2015, vol. 124, issue 3, 727-745

Abstract: This paper examines the role of R&D spending on economic growth of developing economies between the periods of 2000 and 2009. The impact of R&D spending on these economies is determined by using dynamic system GMM, pooled mean group and three stage least square-GMM models. Sixty-six countries are studied and further grouped as; upper-middle-income economies and lower middle-income economies. The result reveals a beneficial impact of R&D spending on economic growth in developing countries. The effect of R&D spending on growth is positive for upper middle-income economies while insignificant in lower income economies. R&D spending has different short and long run effects on growth. Using simultaneous equation models to account for simultaneity and endogeneity, R&D spending remains beneficial to growth and the results remain consistent with the dynamic system estimator. Copyright Springer Science+Business Media Dordrecht 2015

Keywords: Growth; R&D; Technology; Developing (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (25)

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Persistent link: https://EconPapers.repec.org/RePEc:spr:soinre:v:124:y:2015:i:3:p:727-745

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DOI: 10.1007/s11205-014-0807-3

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