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.
Original language | English |
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Pages (from-to) | 727-745 |
Number of pages | 19 |
Journal | Social Indicators Research |
Volume | 124 |
Issue number | 3 |
DOIs | |
Publication status | Published - Dec 2015 |
Externally published | Yes |
Keywords
- growth
- R&D
- technology
- developing