Title: Scaling up innovation: does research and development have a role to play in economic growth? A case of Hungary
Authors: Kunofiwa Tsaurai
Addresses: Department of Finance, Risk Management and Banking, University of South Africa, P.O. Box 392, UNISA, 0003, Pretoria, South Africa
Abstract: The study investigated the impact of research and development expenditure on economic growth in Hungary using annual time series data ranging between 1996 and 2013. Abundant literature is available which shows that research and development expenditure leads to the improvement in economic growth. However, such studies in the case of Hungary are quite scant. The Johansen and Juselius' (1990) cointegration test noted that there exists a long run relationship between research and development and economic growth in Hungary. Moreover, economic growth was found to have been Granger caused by research and development expenditure in Hungary both in the short and long run, in support of the literature. The study, therefore, urges the Hungarian policy makers to craft and implement action plans that boost research and development expenditure in order to enhance economic growth in Hungary.
Keywords: cointegration; economic growth; Hungary; innovation; panel data; research and development.
DOI: 10.1504/IJEED.2017.085375
International Journal of Education Economics and Development, 2017 Vol.8 No.1, pp.65 - 77
Received: 10 Mar 2017
Accepted: 08 May 2017
Published online: 24 Jul 2017 *