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Investigating the Factors Affecting Research and Development Expenditure Efficiency in China and India

Author

Listed:
  • Asma Saeed

    (Women University Mardan (WUM))

  • Zahoor Ul Haq

    (Abdul Wali Khan University Mardan)

  • Javed Iqbal

    (Abdul Wali Khan University Mardan)

Abstract

The significant role of research and development is undeniable in fostering the process of innovation, economic growth, and welfare of nations. This study estimates the levels and factors mainly technological progress and economic growth in affecting the efficiency of public expenditures on research and development activities for China and India over the period 2000 to 2019. Data envelopment analysis (DEA) is employed for measuring the level of efficiency. The results of the DEA technique show that China is the most efficient country between the two countries. On the other hand, the results of bootstrap truncated regression model show that improving access to advance technology and fostering the growth process has a positive impact on the level of efficiency of research and development expenditures. Apart from technological progress and growth trade openness, political stability and government effectiveness are also positively associated with the level of efficiency of research and development expenditures in sample economies. The conclusion of the study suggests that the policymakers should devise policies to raise the level of efficiency of research and development expenditures via increasing access to advance technology and fostering the growth process in the sample economies. Such policies will be helpful in utilizing the scarce resources efficiently.

Suggested Citation

  • Asma Saeed & Zahoor Ul Haq & Javed Iqbal, 2024. "Investigating the Factors Affecting Research and Development Expenditure Efficiency in China and India," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2761-2771, March.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:1:d:10.1007_s13132-023-01258-0
    DOI: 10.1007/s13132-023-01258-0
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    References listed on IDEAS

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