R&D Expenditure and Economic Growth: New Empirical Evidence

Margin—The Journal of Applied Economic Research 9:3 (2015): 205–217

13 Pages Posted: 3 Dec 2015 Last revised: 4 Dec 2015

See all articles by Erdal Gumus

Erdal Gumus

Eskisehir Osmangazi University - Department of Public Finance

Ferdi Celikay

Eskisehir Osmangazi University - Department of Public Finance

Date Written: August 1, 2015

Abstract

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, which is consistent with the relevant literature. For developing countries, the effect is weak in the short run but strong in the long run, as expected. The study adds new empirical evidence to the literature.

Keywords: R&D Expenditure, Economic Growth, Dynamic Panel, ECM, Developing Countries, Developed Countries

JEL Classification: E24, O11, O32, O47

Suggested Citation

Gumus, Erdal and Celikay, Ferdi, R&D Expenditure and Economic Growth: New Empirical Evidence (August 1, 2015). Margin—The Journal of Applied Economic Research 9:3 (2015): 205–217, Available at SSRN: https://ssrn.com/abstract=2698597

Erdal Gumus (Contact Author)

Eskisehir Osmangazi University - Department of Public Finance ( email )

Meselik Campus
Eskisehir, 26480
Turkey
+222 239 37 50/1751 (Phone)

Ferdi Celikay

Eskisehir Osmangazi University - Department of Public Finance ( email )

Meselik Kampusu
Atatürk Bulv.
Osmangazi, Eskisehir 24680
Turkey

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