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The Evaluation of Impacts of Knowledge-Based Economy Factors on the Improvement of Total Factor Productivity (a Comparative Study of Emerging and G7 Economies)

Author

Listed:
  • Abolfazl Shahabadi

    (Bu-Ali Sina University)

  • Fatemeh Kimiaei

    (Institute for Humanities and Cultural Studies)

  • Mohammad Arbab Afzali

    (Monetary and Banking Research Institute (MBRI))

Abstract

This essay evaluates the impacts of knowledge-based economy factors on the total factor productivity (TFP) of emerging economies (the countries known as emerging economies are Brazil, Russia, India, China, South Korea, South Africa, and Singapore) and compares them with G7 economies using panel data analysis during 1996–2013. The results indicate that the ratio of ICT capital stock to GDP and the ratio of foreign R&D capital stock to GDP have the greatest positive impact on TFP, respectively, in emerging economies. But the ratio of domestic R&D capital stock to GDP and the ratio of education costs to GDP in emerging economies comparing to the developed countries of G7 have a less influential impact on TFP. However, in these countries, we see the positive effect of foreign R&D stock through the acquisition of commercial partners’ technologies via imports and customizing them according to local needs and using this factor beside domestic R&D activities which provides a proper atmosphere for improvement of TFP and approaching a knowledge-based economy.

Suggested Citation

  • Abolfazl Shahabadi & Fatemeh Kimiaei & Mohammad Arbab Afzali, 2018. "The Evaluation of Impacts of Knowledge-Based Economy Factors on the Improvement of Total Factor Productivity (a Comparative Study of Emerging and G7 Economies)," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(3), pages 896-907, September.
    • Handle: RePEc:spr:jknowl:v:9:y:2018:i:3:d:10.1007_s13132-016-0379-3
    DOI: 10.1007/s13132-016-0379-3
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    References listed on IDEAS

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    Cited by:

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    2. Shumaila Zeb, 2022. "The role of knowledge economy in Asian business," Future Business Journal, Springer, vol. 8(1), pages 1-13, December.

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    More about this item

    Keywords

    Total factor productivity (TFP); Research and development (R&D); Human capital; Knowledge-based economy;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production

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