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Does Research and Development Expenditure Co-integrate with Gross National Income of ASEAN Countries?

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  • Chong, Fen Nee
  • Liew, Venus Khim-Sen
  • Suhaimi, Rosita

Abstract

In order to successfully transform into a knowledge economy and eradicate poverty, many ASEAN countries have allocated a considerable amount of their yearly expenditures in research and development over the last decade. The objective of this paper is to examine the long-run relationship between research and development expenditure and gross national income of five major ASEAN countries – Thailand, Malaysia, Singapore, Indonesia and Philippines. The results of a cross-country panel data analysis performed in this study suggest that there is a long-run cointegration relationship between these two variables. Findings imply that higher research and development expenditure has a favorable impact on the long-run prosperity of these countries.

Suggested Citation

  • Chong, Fen Nee & Liew, Venus Khim-Sen & Suhaimi, Rosita, 2016. "Does Research and Development Expenditure Co-integrate with Gross National Income of ASEAN Countries?," MPRA Paper 107981, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:107981
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    References listed on IDEAS

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    More about this item

    Keywords

    Research and development expenditure; Gross national income.;

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts

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