scholarly journals THE IMPACT OF RESEARCH AND DEVELOPMENT EXPENDITURES ON INNOVATION PERFORMANCE AND ECONOMIC GROWTH OF THE COUNTRY—THE EMPIRICAL EVIDENCE

2014 ◽  
Vol 2 ◽  
pp. 119-125 ◽  
Author(s):  
Ján Huňady ◽  
Marta Orviská
Keyword(s):  
Economic Growth ◽  
Research And Development ◽  
Technology Diffusion ◽  
Input Data ◽  
Positive Impact ◽  
Innovation Performance ◽  
The Past ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

The main aim of this article is to empirically verify the relationship between research and development (R&D) expenditures, innovation, and economic growth. Based on the correlation analysis, we examine the interdependencies between selected indicators. We have found that countries with an increase in innovation performance over the past years mostly experienced a higher economic growth in the year 2012.  Countries with higher research and development expenditures have not only more researchers, but as well more patents registration. Subsequently, the relationship between R&D expenditures and economic growth is examined based on econometric regression model of the panel data.  Input data used in the regression covers EU countries between the years 1999 and 2011.  Our results suggest the existence of positive effect of lagged R&D expenditures on economic growth in these countries. We have also identified positive impact of the flow of foreign direct investment (FDI) in this model, which could be related to mechanism of technology diffusion across the countries.

scholarly journals How do Poverty and Income Inequality affect Economic Growth in Developing Countries?

2021 ◽  
Vol 4 (2) ◽  
pp. 547-558
Author(s):  
Hamza Saleem ◽  
Fatima Farooq ◽  
Muhammad Aurmaghan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
Negative Impact ◽  
Positive Impact ◽  
Development Indicators ◽  
The Relationship ◽  
Positive Effect ◽  
World Development

The major objective of this research is to examine the relationship between poverty, income inequality and economic growth from some selected developing countries. This study uses panel data for the period of 2002-2015. All the data is taken from world development indicators (WDI). To find out the results, we have used Hausman test an econometrics technique for panel data in this research. The results of the study indicate that poverty and income inequality have a negative impact on economic growth on the other hand Gross capital formation, labor force, total population and government consumption and expenditure have a positive impact on economic growth. The result tells us that changes in these variables have a significant and positive effect on the dependent variable. To achieve the goal of economic growth developing countries should reduce poverty and take meaningful steps to overcome the problem of inequality in the society which can be very helpful in achieving the goal of economic growth.

scholarly journals Domestic Debt and Economic Growth in Tanzania

2018 ◽  
Vol 1 (1) ◽  
pp. p207
Author(s):  
Josephat Lotto ◽  
Catherine T. Mmari
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Gdp Growth ◽  
Gdp Growth Rate ◽  
Domestic Debt ◽  
Negative Effect ◽  
The Government ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

The main objective of this paper was to examine the impact of domestic debt on economic growth in Tanzania for the period 1990 to 2015 using Ordinary Least Square (OLS) regression method to estimate the effects. The study finds that there is an inverse but insignificant relationship between domestic debt and the economic growth of Tanzania as measured by GDP annual growth. The inverse relationship between domestic debt and GDP may be caused by different factors such as; increased trend in domestic borrowing, government lenders’ profile dominated by commercial banks and non-bank financial institutions which promotes the “crowding out” effect; the nature of the instruments used by the government ; the improper use of the domestic borrowed funds which may include funding budgetary deficits, paying up principal and matured obligations on debt, developing financial markets as well as fund other government operations. Other control variables relate with the GDP as predicted. For example, Inflation (INF) has a negative effect on the GDP growth rate, but the relationship is not statistically significant, while gross capital formation (GCF) has a positive statistically significant effect on GDP growth rate. Furthermore, foreign direct investment (FDI) showed a positive effect on the GDP growth rate and export (X) has a positive effect on GDP growth rate, and the relationship is statistically significant explaining that if a country applied an export-led growth economic strategy it enjoys the gains of participating in the world market. This means that an increase in export stimulates demand for goods which leads to increase in output, and as a country’s output increases, the economic performance also takes a similar trend. Finally, government expenditure (GE) had a negative effect on the GDP growth rate which may be explained by the increased government expenditures which are funded by either tax or borrowing. Therefore, what is required for countries like Tanzania is to have better debt management strategies as well as prudential financial management while maintaining to remain within the internationally acceptable debt level of 45% of GDP and maintain a GDP growth rate of not less than 5%. It is important for the country to realize from where to borrow from, the tenure, the risks involved and limitations to borrowing and thus set the right balance of combination of both kinds of debt. Another requirement is to properly utilize the borrowed funds. The central government’s objective should be to use the funds in more development-oriented projects that bring positive returns to the economic development.  The government should not only create a right environment and policies for investment to attract investment from domestic and foreign sources but also be cautious about the kind of investments that the foreign investors make.

scholarly journals THE IMPACT OF INNOVATION ON ECONOMIC GROWTH: THE SPILLOVER EFFECT OF FOREIGN DIRECT INVESTMENT

2020 ◽  
Vol 8 (2) ◽  
pp. 708-714
Author(s):  
Nguyen Tran Thai Ha ◽  
Sobar M. Johari ◽  
Trinh Thi Huyen Thuong ◽  
Nguyen Thi Minh Phuong ◽  
Le Thi Hong Anh
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Research And Development ◽  
Direct Investment ◽  
Positive Impact ◽  
Spillover Effect ◽  
Empirical Method ◽  
Convincing Evidence ◽  
Positive Contribution ◽  
The Impact

Purpose of the study: Innovation is seen as the key to improving quality and productivity, thereby promoting competition and economic growth. This study analyzes the impact of innovation on economic growth through various measures, such as research and development spending, the number of researchers, number of patents as well as trademark registrations. Research results are evidence to recommend policies for intellectual-based economic growth. Methodology: Literature review and empirical analysis conducted in the study. The empirical method is a two-step System Generalize Methods of Moments (GMM), aiming at reliable results. Accessing the World Bank Database, research data from 64 developed and developing countries are collected from 2006 to 2014. Main Findings: The empirical findings show that innovation plays a crucial contribution in promoting economic growth, similar to national openness and government spending on education. This study also finds a positive impact on foreign investment flows and their spillover role in enhancing the correlation between innovation and economic growth. Applications of this study: The findings of this study focus on the contributions of innovation, foreign direct investment inflows, and other macro factors that can be enforced to improve economic growth by policymakers. Novelty/Originality of this study: The study uses different measures of innovation, including inputs such as the number of researchers, research and development expenditure, and outputs as the number of patents and number of trademark registrations. Empirical findings are found consistently, thus confirming that innovation is very important for economic growth. The study also shows convincing evidence confirming the positive contribution of foreign direct investment as well as its spillover effect on innovation and economic growth.

scholarly journals The Impact of Public Expenditure on Economic Growth: A Review of International Literature

2019 ◽  
Vol 19 (2) ◽  
pp. 81-101
Author(s):  
Sheilla Nyasha ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Empirical Evidence ◽  
Government Spending ◽  
Public Expenditure ◽  
Negative Impact ◽  
Positive Impact ◽  
Government Expenditure ◽  
Empirical Literature ◽  
The Impact ◽  
The Relationship

Abstract Research background: Although a number of studies have been conducted on the relationship between public expenditure and economic growth, it is difficult to tell with certainty whether or not an increase in public expenditure is good for economic growth. This lack of consensus on the results of the previous empirical findings makes this study of paramount importance as we take stock of the available empirical evidence from the 1980s to date. Purpose: In this paper, theoretical and empirical literature on the relationship between government expenditure and economic growth has been reviewed in detail. Focus was placed on the review of literature that assessed the impact of government spending on economic growth. Research Methodology: This study grouped studies on the impact of public expenditure on economic growth based on their results. Three groups emerged – positive impact, negative impact and no impact. This was followed by a review of each relevant study and an evaluation of which outcome was more prevalent among the existing studies on the subject. Results: The literature reviewed has shown that the impact of government spending on economic growth is not clear cut. It varies from positive to negative; with some studies even finding no impact. Although the impact of government spending on economic growth was found to be inconclusive, the scale tilts towards a positive impact. Novelty: The study provides an insight into the relationship between public expenditure and economic growth based on a comprehensive review of previous empirical evidence across various countries since the 1980s.

scholarly journals The Impact of Financial Intermediation on the Economy of Ghana

2021 ◽  
Vol 04 (06) ◽  
Author(s):  
David Kwashie Garr ◽  
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Financial Intermediation ◽  
Operating Cost ◽  
Bank Deposits ◽  
Interest Rate Spread ◽  
The Impact ◽  
Adf Test ◽  
The Relationship ◽  
Positive Effect

This study investigated the impact of financial intermediation on economic performance using data from sixteen (16) universal banks in Ghana. This investigation is carried out using five popular indicators of financial sector intermediation, which are deposit mobilisation, customer credit, operating cost, reserve requirement and interest rate spread. Gross Domestic Product Per Capital (GDPPC) was used as a measure of economic sector growth or performance. The causal research design was used in this analysis. The unit root was estimated using the Augmented Dickey Fuller (ADF) test. The relationship between the dependent and independent variables was also determined using basic statistics tests and multiple regression analysis. The results reveal that bank deposits have an insignificant positive effect on the economy. Bank credit, however, has a negative significant effect on economic growth. The results also suggest that operating cost has a negative effect on the economic growth but the result is not significant. However, bank reserves have a positive significant effect. Finally, the results suggest that interest rate spread has a positive effect on the economy, but the relationship is not significant.

scholarly journals The Impact of ICT and FDI as Drivers to Economic Growth In ASEAN-8 Countries: A Panel Regression Analysis

2021 ◽  
Vol 9 ◽  
pp. 91-98
Author(s):  
Noraina Mazuin Sapuan ◽  
Mohammad Rahmdzey Roly
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Regression Analysis ◽  
Panel Regression ◽  
Information And Communication ◽  
Asean Countries ◽  
Using Data ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

Over the last few years, information and communication technology (ICT) has become a key catalyst for economic growth. The durability of this technology is demonstrated by the rapid proliferation of the Internet, mobile phones and cellular networks across the globe. However, among economic scholars, the question of exactly how the spread of ICT affects economic development and FDI, especially in ASEAN countries with differences in levels of income, remains unanswered. The aim of this study was essentially to explore the relationship between ICT dissemination, FDI and economic growth in ASEAN-8 countries. By using data from 2003 to 2017, the panel regression analysis was used to evaluate these relationships. The results showed that the dissemination of ICT and FDI are important and they have a positive effect on the ASEAN-8 countries’ economic development.

The Effect of R&D Cooperation on Organizational Innovation

2015 ◽  
pp. 352-370
Author(s):  
Lurdes Simao ◽  
Mário Franco
Keyword(s):  
Technological Innovation ◽  
Quantitative Study ◽  
Organizational Innovation ◽  
Positive Impact ◽  
Innovation Performance ◽  
Business Practices ◽  
Community Innovation Survey ◽  
External Relations ◽  
The Relationship ◽  
Positive Effect

The literature on innovation suggests that cooperation in R&D has a very positive effect on the performance of firms' technological innovation, but little is known about its impact on organizational innovation. Thus, this chapter aims to analyze the effect of R&D cooperation on firms' abilities to introduce organizational innovation. A quantitative study was made based on a sample of 5,079 Portuguese firms from the CIS 2010-Community Innovation Survey 2010. The results showed R&D cooperation with clients to be predominant in organizational innovation performance. Cooperation with competitors, universities, and state laboratories has no significant effect. R&D cooperation with other firms within the same group and with suppliers has a significant positive impact on organizational innovation in the workplace. In addition, cooperation with consultants is significant in business practices and external relations. This study contributes to the development of theory on organizational innovation, examining the relationship between R&D cooperation and organizational innovation.

Assessing the Impact of Income Inequality on Economic Growth

2017 ◽  
Vol 65 (1-4) ◽  
pp. 1-26 ◽  
Author(s):  
Rohan Joshi
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Positive Impact ◽  
Negative Influence ◽  
Jel Classification ◽  
Indian States ◽  
Simon Kuznets ◽  
The Impact ◽  
The Relationship ◽  
Modern Perspective

The nature of the relationship between income inequality and economic growth, first formalised by Simon Kuznets in 1950, has come under much debate of late. At present, one understanding of this relationship is that given by what Oded Galor called the ‘modern perspective’, which, pointing the direction of causation from income inequality to economic growth asserts that the former imposes a significantly negative influence on the latter. To investigate the same in the context of India, subsequently, this study adopts the typical cross-country approach taken by other studies in this area and estimates the nature of the aforementioned relationship across a cross-section of Indian states. The results, however, disappointingly contrary to the ‘modern perspective’, show a strong significant positive impact of the existence of inequality on growth rates of Indian states, which, if anything, statistically asserts the existence of a trade-off between the two. JEL Classification: D63, O10, O40, O47

scholarly journals Empirical Analysis of the Financial Behavior of Investors with Brand Approach (Case Study: Tehran Stock Exchange)

2017 ◽  
Vol 64 (1) ◽  
pp. 97-121 ◽  
Author(s):  
Bagher Asgarnezhad Nouri ◽  
Samira Motamedi ◽  
Milad Soltani
Keyword(s):  
Social Factors ◽  
Perceived Risk ◽  
Positive Impact ◽  
Stock Exchange ◽  
Financial Behavior ◽  
Brand Awareness ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect ◽  
Moderating Role

Abstract Behavioral science in the field of finance and investment is among new topics raised in recent years. The relationship between financial sciences and other fields of social sciences such as financial psychology has caused researchers to do many researches regarding the behavior of investors in the financial markets and their reactions to different situations. Based on the theories of financial behavior, shareholders' decision to buy and sell stocks is under the influence of internal and external psychological factors. Through designing and experimental testing of the model of investors' financial behavior in the Tehran Stock Exchange with an emphasis on brand, this study was an attempt to investigate the influence of these factors. To this end, financial, psychological and social factors were considered as the most important external factors influencing the behavior of investors and, considering the mediating role of brand awareness, their impact on perceived risk and perceived return as well as investment intention was tested. The research population consisted of all individual investors in the Tehran Stock Exchange. In order to determine the sample size, considering unlimited population, Cochran formula was used and hence the sample size was determined to be 145. For data collection, standard questionnaire was used. Confirmatory factor analysis was used to test the reliability of the questionnaire and the research hypotheses were tested using path analysis. The results showed that psychological factors have a positive impact on perceived risk and returns. Financial factors had a positive impact on perceived risk but no impact on perceived return. The impact of social factors on perceived risk and perceived return was not confirmed. Moreover, the results showed that brand awareness has a moderating role in the relationship between social factors and perceived risk and return. However, its moderating role was not confirmed in the relationship between the psychological and financial factors and perceived risk and return. Perceived risk had a positive effect on attitude toward the brand. However, the impact of perceived return on attitude toward the brand was not significant. Finally, the attitude toward the brand had a positive effect on shareholders' investment intention.

Growth and Institutional Change: The Influence of the Spanish Regionalisation Process on Economic Performance

1996 ◽  
Vol 14 (1) ◽  
pp. 71-87 ◽  
Author(s):  
A Rodríguez-Pose
Keyword(s):  
Economic Growth ◽  
Institutional Change ◽  
Economic Performance ◽  
Western Europe ◽  
Positive Influence ◽  
Relative Growth ◽  
Beneficial Effects ◽  
The Past ◽  
The Impact ◽  
The Relationship

The relationship between institutional change and economic growth has been attracting great attention in recent years. However, despite some notable exceptions, researchers have been wary to approach this topic empirically. This paper represents an empirical attempt to try to unravel the impact on economic performance of what has been one of the most significant processes of institutional change in Western Europe in the past few decades—the regionalisation process—by taking the case of Spain, one of the countries where the shift from a highly centralised to a decentralised structure has been most profound. Results show that, at least in the early stages, the emergence of the Spanish regional state has had slightly beneficial effects on the relative growth performance of regions achieving the greatest level of autonomy when compared with their growth rates in the high point of Spanish centralism. Nevertheless, it is still too early to assert whether this positive influence will be a long-lasting one or can be attributed mainly to the dynamics of institutional change and, thus, will wane with time.

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