The Relationship Between Economic Growth and Innovation

2020 ◽  
pp. 358-382
Author(s):  
Samet Akça ◽  
Bilge Afşar
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Unit Root ◽  
Oecd Countries ◽  
Patent Applications ◽  
The Relationship ◽  
Positive Effect

This chapter studies innovation and economic growth and emphasizes their relationship. In this context; innovation and economic growth outputs of 16 OECD countries between 2005 and 2015 are analyzed. GDP is considered as economic growth variable, R&D investments in GDP (%), and patent applications are considered as innovation variables. In light of these variables, panel data analyze is used. Unit root, Pedroni co-integration and FMOLS tests were applied with the order. As a result, the increase in patent applications and R&D investments was found to have a positive effect on economic growth.

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.

New Evidence on the Relationship Between Economic Freedom and Growth: A Panel Cointegration Analysis for The Case of OECD

2012 ◽  
Vol 12 (3) ◽  
pp. 1850263 ◽  
Author(s):  
Ekrem Erdem ◽  
Can Tansel Tugcu
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Total Factor Productivity ◽  
Economic Freedom ◽  
Global Financial Crisis ◽  
Oecd Countries ◽  
Cointegration Analysis ◽  
Factor Productivity ◽  
The Impact ◽  
The Relationship

The aim of this paper is to find a new answer to an old question “Is economic freedom good or not for economies?” which was refreshed after the Global Financial Crisis of 2008. For this purpose, the relationship between economic freedom and economic growth, and the relationship between economic freedom and total factor productivity in OECD countries were investigated by using panel data for the period of 1995-2009. Study employed the recently developed cointegration test by Westerlund (2007) and the estimation technique by Bai and Kao (2006) which account for cross-sectional dependence that is an important problem in the panel data studies. Although no significant relationship found between economic freedom and total factor productivity, cointegration analysis revealed that economic freedom matters for economic growth in OECD countries in the long-run, and estimation results showed that direction of the impact is negative.

Debt-oriented Capital Structure and Economic Growth: Panel Evidence for OECD Countries

2019 ◽  
Vol 27 (4) ◽  
pp. 519-542
Author(s):  
Syed Munawar Shah ◽  
Mariani Abdul-Majid ◽  
Zulkefly Abdul Karim
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Capital Structure ◽  
Direct Relationship ◽  
Oecd Countries ◽  
European Countries ◽  
Real Sector ◽  
The Real ◽  
The Relationship

This paper examines the relationship between debt-oriented capital structure and economic growth by analysing a panel data of 16 European countries, based on the availability of data. We find that the corporate leverage in financial and non-financial corporations affects economic growth negatively. Furthermore, the results indicate that the leverage in non-financial corporations affects economic growth more than the leverage in financial corporations. This is due to the direct relationship between economic growth and the real sector and the fact that non-financial corporations in OECD countries hold more debt as compared with financial corporations.

scholarly journals Trade Openness and Macroeconomic Policy in OECD Countries

2015 ◽  
Author(s):  
Naime İrem Koşan ◽  
Sudi Apak
Keyword(s):  
Panel Data ◽  
Unemployment Rate ◽  
World Economy ◽  
Trade Openness ◽  
Oecd Countries ◽  
The Other ◽  
Other Hand ◽  
Domestic Savings ◽  
The Relationship ◽  
Positive Effect

Trade openness has been subject to an important issue many studies in literature. It allows us to analyze potential trade as a percentage of gross domestic product. Total value of international trade in goods and services shows the countries’ integration into the world economy. Generally, small countries are more integrated because of their dependency on imports. On the other hand, there many variables which effects trade integration. Our study focuses on to analyze the effects on trade openness and make inferences for OECD countries. In this paper we aim to examine the relationship between trade openness and macro-economic indicators in OECD countries. To analyze the relationship, we used panel data regression analysis. Data obtained from World Bank, The Heritage Foundation and United Nations Conference on Trade and Development (UNCTAD). The panel data covers 2000-2013 periods and 33 countries. The analysis made through the Stata econometric packet program. We predicted pooled, fixed effects and random effects panel data models and analyzed them. It has been found that gross domestic savings, investment freedom, and unemployment rate are statistically significant. The results found in this paper show that investment freedom and gross domestic savings have positive effect on trade openness as we expected. On the other hand, unemployment rate has positive effect on trade openness. These findings have important policy implications for OECD countries. Our interpretation of these findings is that, integration to world economy has generally positive effects for macroeconomic factors in OECD countries, but it should be limited.

scholarly journals THE EFFECTS OF R&D EXPENDITURES ON ECONOMIC GROWTH IN OECD COUNTRIES

2020 ◽  
Vol 1 (2) ◽  
pp. 175
Author(s):  
Amanah Abdulkadir ◽  
Wendra Afriana ◽  
Harry Azis
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Positive Impact ◽  
Internet Access ◽  
Oecd Countries ◽  
Short Term ◽  
General Hypothesis ◽  
Government Research ◽  
The Relationship ◽  
Positive Effect

This study investigates the relationship between R&D and economic growth in 33 OECD countries. This research uses panel data method. The results showed that there are three independent variables that affect economic growth. Namely, gross domestic expenditure on R&D, government research, and internet access. However, gross domestic expenditure on R&D and government research has a negative impact on economic growth. With the t-statistics of -2.944775 and -0.203002, respectively. While the t-statistic for internet access variable is 2.460783. This shows that only the internet access variable has a positive effect on economic growth. Meanwhile, the variable access to computers from home does not affect economic growth, because the probability is 0.0674 or> 0.05. These findings do not support the general hypothesis that R&D expenditures will have a positive impact on economic growth. The research agenda must be clear, substantive and short-term and must be implemented as a consideration in making decisions. So that every investment in R&D spending provides benefits with the hope of creating new innovations, so that the Indonesian economy grows positively.

Financial Intermediation and Growth: Theory and Some Cross-Country Evidence

1997 ◽  
Vol 36 (4II) ◽  
pp. 855-862
Author(s):  
Tayyeb Shabir
Keyword(s):  
Economic Growth ◽  
Financial Markets ◽  
Financial Intermediation ◽  
Empirical Estimates ◽  
Financial Liberalisation ◽  
Cross Country ◽  
Level Of Significance ◽  
The Relationship ◽  
Positive Effect ◽  
Theoretical Developments

Well-functioning financial markets can have a positive effect on economic growth by facilitating savings and more efficient allocation of capital. This paper characterises some of the recent theoretical developments that analyse the relationship between financial intermediation and economic growth and presents empirical estimates based on a model of the linkage between financially intermediated investment and growth for two separate groups of countries, developing and advanced. Empirical estimates for both groups suggest that financial intermediation through the efficiency of investment leads to a higher rate of growth per capita. The relevant coefficient estimates show a higher level of significance for the developing countries. This financial liberalisation in the form of deregulation and establishment and development of stock markets can be expected to lead to enhanced economic growth.

scholarly journals Can One Promote a Delegation of the Bilateral Aid to Multilateral Donors to Improve Foreign Aid Effect on Economic Growth in ECOWAS (Note 1) Countries?

2019 ◽  
Vol 2 (1) ◽  
pp. 51
Author(s):  
W. Jean Marie Kébré
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Least Squares ◽  
Foreign Aid ◽  
Bilateral Aid ◽  
Multilateral Aid ◽  
Multilateral Institutions ◽  
Negative Effect ◽  
High Degree ◽  
The Relationship

<p><em>This article analyzes the relationship between external aid and economic growth in the ECOWAS region, with a focus on bilateral and multilateral aid effects. The key idea behind this analysis is an argument of Svensson</em><em> </em><em>(2000)</em><em> that multilateral aid is more effective than bilateral aid because of the high degree of altruism of bilateral donors. He therefore suggested a delegation of bilateral aid to multilateral institutions. To appreciate his suggestion, this analysis used panel data from the 16 ECOWAS countries from the period 1984 to 2014. The results of the estimates, based on the dynamic least squares estimator (DOLS), show a negative effect of foreign aid on economic growth. This negative effect on economic growth persists when the components of aid are introduced into the model. In addition, results highlight that governance is a channel through which foreign aid affect positively economic growth. In these conditions, bilateral aid is more effective on economic growth than multilateral aid. These results about foreign aid received by ECOWAS countries invalidates</em><em> </em><em>Svensson’s</em><em> </em><em>(</em><a title="Svensson, 2000 #5" href="#_ENREF_1"><em>2000</em></a><em>)</em><em> theory. Therefore, a delegation of bilateral aid to multilateral institutions is not relevant because bilateral aid contributes more to economic growth if governance is taken into account.</em></p>

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