R&D expenditure and its macroeconomic effects: A comparative study of Israel and South Caucasus countries

  • 42 Views
  • 6 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

The impact of research and development (R&D) expenditure is crucial for understanding contemporary economic development strategies. This study investigates the relationship between R&D spending as a percentage of GDP and economic growth, focusing on the South Caucasus countries (Azerbaijan, Georgia, and Armenia) and Israel, which is notable for its substantial R&D expenditure (5.71% of GDP in 2020). The objective is to evaluate the impact of R&D expenditure on economic development through the application of rigorous empirical methods. By employing a quantitative approach, this study aims to offer a detailed analysis of the impact of R&D investment on economic growth across various countries. Ordinary least squares (OLS) regression analyzes the association between R&D expenditure and GDP levels. Granger causality tests are utilized to investigate the causal relationships. The results demonstrate a significant positive relationship between R&D expenditure and GDP across all studied countries. Furthermore, the analysis reveals that GDP growth stimulates increased R&D investments in Azerbaijan and Armenia, as evidenced by Granger causality tests. To sum up, this paper underscores the critical role of R&D spending in driving economic development and highlights the necessity for policy initiatives focused on strengthening R&D frameworks.

view full abstract hide full abstract
    • Figure 1. Share of R&D expenses in GDP
    • Figure 2. R&D expenses per capita
    • Figure 3. Distinct correlation trend between R&D expenditure and unemployment rate
    • Table 1. Brief overview of studies on R&D and economic development
    • Table 2. Time series unit route test
    • Table 3. The results of the least squares method
    • Table 4. Effects of the logarithm of R&D expenditure on the logarithm of GDP per capita
    • Table 5. Granger causality relationship between LNRD and LNGDPPC
    • Conceptualization
      Mayis Gulaliyev, Ramil Hasanov, Naila Sultanova
    • Data curation
      Mayis Gulaliyev, Ramil Hasanov, Lale Ibrahimli, Narmin Guliyeva
    • Formal Analysis
      Mayis Gulaliyev, Lale Ibrahimli, Narmin Guliyeva
    • Methodology
      Mayis Gulaliyev, Ramil Hasanov
    • Project administration
      Mayis Gulaliyev, Naila Sultanova
    • Software
      Mayis Gulaliyev, Ramil Hasanov
    • Supervision
      Mayis Gulaliyev
    • Validation
      Mayis Gulaliyev, Ramil Hasanov, Naila Sultanova, Lale Ibrahimli, Narmin Guliyeva
    • Writing – original draft
      Mayis Gulaliyev, Ramil Hasanov
    • Writing – review & editing
      Mayis Gulaliyev, Ramil Hasanov, Naila Sultanova, Lale Ibrahimli, Narmin Guliyeva
    • Investigation
      Ramil Hasanov
    • Resources
      Ramil Hasanov, Naila Sultanova, Lale Ibrahimli
    • Visualization
      Ramil Hasanov, Lale Ibrahimli, Narmin Guliyeva
    • Funding acquisition
      Narmin Guliyeva
Related Articles

  • Impact on poverty and income inequality in Malaysia’s economic growth

    Rabiul IslamORCID Researcher ID, Ahmad Bashawir Abdul Ghani , Irwanshah Zainal Abidin , Jeya Malar Rayaiappan doi: http://dx.doi.org/10.21511/ppm.15(1).2017.05
    Problems and Perspectives in Management Volume 15, 2017         Issue #1         pp. 55-62 Views: 11729 Downloads: 5589 TO CITE АНОТАЦІЯ

    Poverty and income inequality are extreme issues that still exist in Malaysia. Any rise in poverty and income inequality definitely affect economic growth. There are many great efforts taken by the government of Malaysia to eradicate poverty and to reduce the gap of income inequality which occurs since 1970’s. The incidence of poverty and income inequality is higher in rural areas compared to urban areas. This paper is mainly to study the level of poverty and income inequality in Malaysia together with government intervention to develop Malaysia’s economic growth. The research is focused among the working people at Ipoh, Perak. In this paper, questionnaire forms are being distributed to get information regarding the issue of poverty and income inequality. It also looks into the strategies taken by the government of Malaysia to eradicate poverty and income inequality. Few recommendations are given in terms of education policy, financial aid and assistance from government and non-government organization (NGO) to upgrade the standard and quality of living among the poor and lower-income group of people.

  • Impact of inflation on economic growth: evidence from Nigeria

    Anthony Olugbenga AdaramolaORCID , Oluwabunmi Dada doi: http://dx.doi.org/10.21511/imfi.17(2).2020.01
    Investment Management and Financial Innovations Volume 17, 2020         Issue #2         pp. 1-13 Views: 8813 Downloads: 5172 TO CITE АНОТАЦІЯ

    In an attempt to examine the influence of inflation on the growth prospects of the Nigerian economy, the study employs the autoregressive distributed lag on the selected variables, i.e. real gross domestic product (GDP), inflation rate, interest rate, exchange rate, degree of economy`s openness, money supply, and government consumption expenditures for the period 1980–2018. The study findings indicate that inflation and real exchange rate exert a significant negative impact on economic growth, while interest rate and money supply indicate a positive and significant impact on economic growth. Other variables in the model depict no influence on the economic growth of Nigeria. The causality result shows the unidirectional relationships between interest rate, exchange rate, government consumption expenditures and gross domestic product. However, inflation and the degree of openness show no causal relationship with gross domestic product. As a result, the study recommends that a more pragmatic effort is needed by the monetary authorities to target the inflation vigorously to prevent its adverse effect by ensuring a tolerable rate that would stimulate the economic growth of Nigeria.

  • Formalization of the impact of imbalances in the movement of financial resources on economic growth of countries in Central and Eastern Europe

    Serhiy KozmenkoORCID , Maxim KorneyevORCID Researcher ID doi: http://dx.doi.org/10.21511/afc.01(1).2017.06
    Accounting and Financial Control Volume 1, 2017         Issue #1         pp. 48-58 Views: 7763 Downloads: 1362 TO CITE

    The article deals with the impact of financialization on economic growth in countries of Central and Eastern Europe. It determinesthe impact of imbalances in the movement of financial resources caused by financialization on economic growth of these countries. It proves that the implementation of measures aimed at increasing the openness of the economy and maintaining solvent demand have a positive impact on economic growth of the surveyed countries in the long run. It also proves the importance of developing a set of measures of strategic nature regulating imbalances in the movement of financial resources caused by financialization.

Download Preview
Close
Public and Municipal Finance
Public and Municipal Finance