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Endogenous dynamics between R&D, ICT and economic growth: Empirical evidence from the OECD countries

Author

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  • Nair, Mahendhiran
  • Pradhan, Rudra P.
  • Arvin, Mak B.

Abstract

Intensification of research and development (R&D) and the information and communication technology (ICT) infrastructure have been regarded as important drivers for sustained economic growth across the globe. In this study, using a panel vector autoregressive model, we examine the endogenous relationships between R&D, ICT infrastructure development and economic growth in the OECD countries between 1961 and 2018. The empirical results show that both R&D and ICT infrastructure development contribute to long-term economic growth in the OECD countries. The short-run dynamics show that complex inter-relationships between these variables exist. The key insight from this study is that to attain sustained economic growth, policymakers in the OECD economies should put in place an integrated framework that takes into consideration co-development policies pertaining to R&D investment, ICT diffusion and economic growth-enhancing initiatives.

Suggested Citation

  • Nair, Mahendhiran & Pradhan, Rudra P. & Arvin, Mak B., 2020. "Endogenous dynamics between R&D, ICT and economic growth: Empirical evidence from the OECD countries," Technology in Society, Elsevier, vol. 62(C).
    • Handle: RePEc:eee:teinso:v:62:y:2020:i:c:s0160791x19306669
    DOI: 10.1016/j.techsoc.2020.101315
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    More about this item

    Keywords

    R&D; ICT infrastructure; Economic growth; OECD countries;
    All these keywords.

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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