IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/56005.html
   My bibliography  Save this paper

The Significance of Research and Development for Economic Growth: The Case of Pakistan

Author

Listed:
  • Khan, Jangraiz
  • Rehman Khattak, Naeem Ur

Abstract

This paper concentrates on the significance of Research and Development (R&D) for economic growth in the developing economy of Pakistan. The paper also questioned the major macro determinants of R&D in Pakistan. The study used time series data for the period 1971- 2008. The results obtained from the Ordinary Squares method showed that R&D significantly affects the Real GDP per capita in Pakistan. Health, labour force , and Physical capital are among the other determinants of Real GDP per capita. The results further show that real GDP per capita and quality of educational institutions are the significant factors which affect R&D. The Johansen Cointegration test confirmed the existence of long run relationship between R&D and economic growth. Similarly, R&D and its determinants were also found in long run relationship.It is therefore recommended to increase investment in R&D to achieve sustained economic growth. It is also recommended to collect and record quality R&D data for effective policy making in the field of science and technology, and social sectors in Pakistan.

Suggested Citation

  • Khan, Jangraiz & Rehman Khattak, Naeem Ur, 2014. "The Significance of Research and Development for Economic Growth: The Case of Pakistan," MPRA Paper 56005, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:56005
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/56005/1/MPRA_paper_56005.pdf
    File Function: original version
    Download Restriction: no

    File URL: https://mpra.ub.uni-muenchen.de/59805/1/MPRA_paper_59805.pdf
    File Function: revised version
    Download Restriction: no

    File URL: https://mpra.ub.uni-muenchen.de/60594/1/MPRA_paper_56005.pdf
    File Function: revised version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Grossmann, Volker, 2007. "How to promote R&D-based growth? Public education expenditure on scientists and engineers versus R&D subsidies," Journal of Macroeconomics, Elsevier, vol. 29(4), pages 891-911, December.
    2. Zeng, Jinli, 2001. "Innovative vs. imitative R&D and economic growth," Journal of Development Economics, Elsevier, vol. 64(2), pages 499-528, April.
    3. Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998. "How does foreign direct investment affect economic growth?1," Journal of International Economics, Elsevier, vol. 45(1), pages 115-135, June.
    4. Goel, Rajeev K. & Payne, James E. & Ram, Rati, 2008. "R&D expenditures and U.S. economic growth: A disaggregated approach," Journal of Policy Modeling, Elsevier, vol. 30(2), pages 237-250.
    5. Charles I. Jones, 2002. "Sources of U.S. Economic Growth in a World of Ideas," American Economic Review, American Economic Association, vol. 92(1), pages 220-239, March.
    6. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 407-443.
    7. Khattak, Naeem Ur Rehman & khan, jangraiz, 2012. "The Contribution of Education to Economic Growth: Evidence from Pakistan," MPRA Paper 51180, University Library of Munich, Germany.
    8. Kalemli-Ozcan, Sebnem & Ryder, Harl E. & Weil, David N., 2000. "Mortality decline, human capital investment, and economic growth," Journal of Development Economics, Elsevier, vol. 62(1), pages 1-23, June.
    9. Sterlacchini, Alessandro, 2008. "R&D, higher education and regional growth: Uneven linkages among European regions," Research Policy, Elsevier, vol. 37(6-7), pages 1096-1107, July.
    10. Kuo, Chun-Chien & Yang, Chih-Hai, 2008. "Knowledge capital and spillover on regional economic growth: Evidence from China," China Economic Review, Elsevier, vol. 19(4), pages 594-604, December.
    11. Kwack, Sung Yeung & Lee, Young Sun, 2006. "Analyzing the Korea's growth experience: The application of R&D and human capital based growth models with demography," Journal of Asian Economics, Elsevier, vol. 17(5), pages 818-831, November.
    12. Asteriou, D. & Agiomirgianakis, G. M., 2001. "Human capital and economic growth: Time series evidence from Greece," Journal of Policy Modeling, Elsevier, vol. 23(5), pages 481-489, July.
    13. McDonald, Scott & Roberts, Jennifer, 2002. "Growth and multiple forms of human capital in an augmented Solow model: a panel data investigation," Economics Letters, Elsevier, vol. 74(2), pages 271-276, January.
    14. Falk, Martin, 2007. "R&D spending in the high-tech sector and economic growth," Research in Economics, Elsevier, vol. 61(3), pages 140-147, September.
    15. Yuan K. Chou, 2002. "The Australian Growth Experience (1960-2000): R&D-Based, Human Capital-Based, Or Just Steady State Growth?," Department of Economics - Working Papers Series 855, The University of Melbourne.
    16. Ballot, Gerard & Fakhfakh, Fathi & Taymaz, Erol, 2001. "Firms' human capital, R&D and performance: a study on French and Swedish firms," Labour Economics, Elsevier, vol. 8(4), pages 443-462, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kais Saidi & Chebli Mongi, 2018. "The Effect of Education, R&D and ICT on Economic Growth in High Income Countries," Economics Bulletin, AccessEcon, vol. 38(2), pages 810-825.
    2. Abdul Aleem Najam & Muhammad Zahid Naeem & Birau Ramona & Ninulescu Petre Valeriu, 2023. "Investigating The Impact Of Civil Liberties And Creative Class On Innovation Output And Economic Growth: An Empirical Case Study For Pakistan," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 14-31, June.
    3. Jangraiz KHAN & Naeem Ur Rehman KHATTAK, 2016. "Does Health Matter for Economic Growth?," Journal of Economic and Social Thought, KSP Journals, vol. 3(1), pages 166-170, March.
    4. Jangraiz KHAN & Zilakat Khan MALIK, 2015. "Education-Economic Growth Nexus: A Review," Journal of Economic and Social Thought, KSP Journals, vol. 2(2), pages 121-126, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jangraiz KHAN, 2015. "The Role of Research and Development in Economic Growth: A Review," Journal of Economics Bibliography, KSP Journals, vol. 2(3), pages 128-133, September.
    2. Ramesh Chandra Das & Sujata Mukherjee, 2020. "Do Spending on R&D Influence Income? An Enquiry on the World’s Leading Economies and Groups," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(4), pages 1295-1315, December.
    3. Dalia Streimikiene & Grigorios L. Kyriakopoulos, 2022. "Comparative Assessment of Research & Development and Quality of Life Indicators in Lithuania and Greece," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(Special16), pages 1014-1014, November.
    4. Xiangfei Ma & Inna Gryshova & Viktoriia Khaustova & Olena Reshetnyak & Maryna Shcherbata & Denys Bobrovnyk & Mykyta Khaustov, 2022. "Assessment of the Impact of Scientific and Technical Activities on the Economic Growth of World Countries," Sustainability, MDPI, vol. 14(21), pages 1-35, November.
    5. Ramesh Chandra Das, 2020. "Interplays among R&D spending, patent and income growth: new empirical evidence from the panel of countries and groups," Journal of Innovation and Entrepreneurship, Springer, vol. 9(1), pages 1-22, December.
    6. Narayan, Seema & Narayan, Paresh Kumar & Mishra, Sagarika, 2010. "Investigating the relationship between health and economic growth: Empirical evidence from a panel of 5 Asian countries," Journal of Asian Economics, Elsevier, vol. 21(4), pages 404-411, August.
    7. Bakari, Sayef, 2021. "Do researchers affect economic growth?," MPRA Paper 108788, University Library of Munich, Germany.
    8. Xiong, Ailun & Xia, Senmao & Ye, Zhen Peter & Cao, Dongmei & Jing, Yanguo & Li, Hongyi, 2020. "Can innovation really bring economic growth? The role of social filter in China," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 50-61.
    9. Umit BULUT & Ahsen Seda BULUT, 2015. "The Role of Schooling in Struggling with the Middle-Income Trap: Dynamic Panel Data Analysis," Journal of Social and Administrative Sciences, KSP Journals, vol. 2(4), pages 205-215, December.
    10. Jangraiz KHAN & Zilakat Khan MALIK, 2015. "Education-Economic Growth Nexus: A Review," Journal of Economic and Social Thought, KSP Journals, vol. 2(2), pages 121-126, June.
    11. Khattak, Naeem Ur Rehman & khan, jangraiz, 2012. "The Contribution of Education to Economic Growth: Evidence from Pakistan," MPRA Paper 51180, University Library of Munich, Germany.
    12. Md. Qamruzzaman & Wei Jianguo & Sharmin Jahan & Zhu Yingjun, 2021. "Financial innovation, human capital development, and economic growth of selected South Asian countries: An application of ARDL approach," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 4032-4053, July.
    13. Prettner, Klaus, 2013. "Public education, technological change and economic prosperity," University of Göttingen Working Papers in Economics 149, University of Goettingen, Department of Economics.
    14. Dinda, Soumyananda, 2016. "Interrelationships between Social and human Capital, and Economic Growth," MPRA Paper 89646, University Library of Munich, Germany, revised 2017.
    15. Daniel Ştefan Armeanu & Georgeta Vintilă & Ştefan Cristian Gherghina, 2017. "Empirical Study towards the Drivers of Sustainable Economic Growth in EU-28 Countries," Sustainability, MDPI, vol. 10(1), pages 1-22, December.
    16. Iamsiraroj, Sasi, 2016. "The foreign direct investment–economic growth nexus," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 116-133.
    17. Johannes W. Fedderke & John M. Luiz, 2005. "Does Human Generate Social and Institutional Capital? Exploring Evidence From Time Series Data in a Middle Income Country," Working Papers 029, Economic Research Southern Africa.
    18. Philipp Harms & Pierre-Guillaume Méon, 2013. "The Growth Effects of Greenfield Investment and Mergers and Acquisitions: Econometric Investigation and Implication for MENA Countries," Working Papers 794, Economic Research Forum, revised Nov 2013.
    19. Maciej Jagódka & Małgorzata Snarska, 2021. "The State of Human Capital and Innovativeness of Polish Voivodships in 2004–2018," Sustainability, MDPI, vol. 13(22), pages 1-20, November.
    20. Kostakis, Ioannis & Lolos, Sarantis & Doulgeraki, Charikleia, 2020. "Cultural Heritage led Growth: Regional evidence from Greece (1998-2016)," MPRA Paper 98443, University Library of Munich, Germany.

    More about this item

    Keywords

    Research and Development; Economic Growth; Health; Labour Force; Quality of Educational Institutions;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:56005. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.