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R&D Expenditure And Growth Dynamics In A Lower-Middle-Income African Economy: Evidence From Tunisia

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  • Moez El Elj
  • Boutheina Abassi

Abstract

In this paper, we make an original contribution by measuring the impact of R&D capital and knowledge accumulation on economic growth in a lower-medium income African country. For this purpose, we make use of time series data from 1996-2022 and investigate the potential causality relationship between R&D and Economic growth in Tunisia. Using ARDL model, the cointegration analysis suggests that there is a long run relationship between the two factors. However, the R&D returns to growth is relatively weak. Moreover, the results of causality test confirm only unidirectional causality from R&D expenditure to growth. Specifically, when a country experiences relatively low level of growth, no benefits of growth will be directed towards R&D and there is no feedback effect from growth to R&D.

Suggested Citation

  • Moez El Elj & Boutheina Abassi, 2025. "R&D Expenditure And Growth Dynamics In A Lower-Middle-Income African Economy: Evidence From Tunisia," Journal of Smart Economic Growth, , vol. 10(2), pages 151-170, September.
    • Handle: RePEc:seg:012016:v:10:y:2025:i:2:p:151-170
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