Authors: Mohammed Issa Shahateet
Addresses: Department of Business Information Technology, Princess Sumaya University for Technology, University Campus – Jubaiha, P.O. Box 1438, Amman 11941, Jordan
Abstract: This paper explores the impact of research and development (R&D) activities on economic growth in 12 Arab countries of the Middle East. We have conducted different pre-estimation tests to justify model selection, including cross-sectional dependence, stationarity, causality, and cointegration. We perform post-estimation diagnostics to test for both long-run and short-run relationship by applying a panel auto regressive distributed lag (ARDL) model using data for the period 1996-2016. Long-run analysis confirms that R&D activities positively affect economic growth while in the short-run this relationship is not significant.
Keywords: research and development; R&D; economic growth; auto regressive distributed lag; ARDL model; panel data; Arab countries.
International Journal of Computational Economics and Econometrics, 2020 Vol.10 No.4, pp.345 - 365
Accepted: 24 Apr 2019
Published online: 04 Aug 2020 *