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Positive and Negative Effects of Research and Development

Author

Listed:
  • Mohd Shahidan Shaari

    (School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis, Perlis, Malaysia,)

  • Diana Nabila Chau Abdullah

    (Faculty of Business, Economics and Accountancy, Universiti Malaysia Sabah, Sabah, Malaysia)

  • Nur Salimah Binti Alias

    (School of Human Development and Technocommunication, Universiti Malaysia Perlis, Perlis, Malaysia,)

  • Nor Syamimi Mohamed Adnan

    (School of Human Development and Technocommunication, Universiti Malaysia Perlis, Perlis, Malaysia.)

Abstract

This study aims to examine the effects of research and development expenditure on economic growth and carbon dioxide (CO2) emission in the panel data for the period of 1996-2011 from five nations (Germany, Russian Federation, United Kingdom, United States and Canada). The panel co-integration was conducted and the results show that there is co-integrated relationship among the variables (research and development [R&D], gross domestic product [GDP], energy use and CO2 emission). Then the fully modified ordinary least squares (FMOLS) test was performed and the findings explain that energy use and R&D are the determinants of GDP. Results from FMOLS show that energy use and R&D are the determinants of GDP. Energy use and GDP are the determinants of CO2 emission. Results from dynamic ordinary least squares show that R&D is important to boost economic growth while energy use, GDP and R&D can have deleterious effects on CO2 emission. Therefore, it is important to control the R&D expenditure to balance economic growth and environmental conservation.

Suggested Citation

  • Mohd Shahidan Shaari & Diana Nabila Chau Abdullah & Nur Salimah Binti Alias & Nor Syamimi Mohamed Adnan, 2016. "Positive and Negative Effects of Research and Development," International Journal of Energy Economics and Policy, Econjournals, vol. 6(4), pages 767-770.
    • Handle: RePEc:eco:journ2:2016-04-13
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    Research and Development; Economic Growth; Carbon Dioxide Emission;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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