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Research output and economic growth in G7 countries: new evidence from asymmetric panel causality testing

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  • Abdulnasser Hatemi-J
  • Ahdi N. Ajmi
  • Ghassen El Montasser
  • Roula Inglesi-Lotz
  • Rangan Gupta

Abstract

Recent studies have shown increasing interest on the relationship between research output and economic growth. The study of such a relationship is not only of theoretical interest, but it can also influence specific policies to improve the quality, and probably the quantity of research output. This article has studied this relationship in G7 countries using the asymmetric panel causality test of Hatemi-J (2011). Our results show that only the UK shows a causal relationship from the output of research to real GDP. However, when the signs of variations are taken into account, there is an asymmetric causality running from negative research output shocks to negative real GDP shocks.

Suggested Citation

  • Abdulnasser Hatemi-J & Ahdi N. Ajmi & Ghassen El Montasser & Roula Inglesi-Lotz & Rangan Gupta, 2016. "Research output and economic growth in G7 countries: new evidence from asymmetric panel causality testing," Applied Economics, Taylor & Francis Journals, vol. 48(24), pages 2301-2308, May.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:24:p:2301-2308
    DOI: 10.1080/00036846.2015.1117052
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    8. R. Inglesi-Lotz & A. Pouris, 2013. "The influence of scientific research output of academics on economic growth in South Africa: an autoregressive distributed lag (ARDL) application," Scientometrics, Springer;Akadémiai Kiadó, vol. 95(1), pages 129-139, April.
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    Cited by:

    1. Hatemi-J, Abdulnasser, 2020. "Asymmetric Panel Causality Tests with an Application to the Impact of Fiscal Policy on Economic Performance in Scandinavia," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 73(3), pages 389-404.
    2. Rangan Gupta & Amine Lahiani & Chi-Chuan Lee & Chien-Chiang Lee, 2019. "Asymmetric dynamics of insurance premium: the impacts of output and economic policy uncertainty," Empirical Economics, Springer, vol. 57(6), pages 1959-1978, December.
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    5. Xu, Xu & Reed, Markum, 2021. "The impact of internet access on research output - a cross-country study," Information Economics and Policy, Elsevier, vol. 56(C).
    6. R. Inglesi-Lotz & A. Hakimi & A. Pouris, 2018. "Patents vs publications and R&D: three sides of the same coin? Panel Smooth Transition Regression (PSTR) for OECD and BRICS countries," Applied Economics, Taylor & Francis Journals, vol. 50(45), pages 4912-4923, September.
    7. M. Gouveia & R. Inglesi-Lotz, 2021. "Examining the relationship between climate change-related research output and CO2 emissions," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(11), pages 9069-9111, November.
    8. Peng, Yi-Ting & Chang, Tsangyao & Ranjbar, Omid & Xiang, Feiyun, 2024. "Has the COVID-19 pandemic shock transmitted to the u.s. stock market: Evidence using bootstrap (A)symmetric fourier granger causality test in quantiles," The North American Journal of Economics and Finance, Elsevier, vol. 72(C).
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    10. Abdulnasser Hatemi-J & Rangan Gupta & Axel Kasongo & Thabo Mboweni & Ndivhuho Netshitenzhe, 2018. "Does tourism cause growth asymmetrically in a panel of G-7 countries? A short note," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 45(1), pages 49-57, February.
    11. Chien‐Chiang Lee & Chi‐Chuan Lee & Donald Lien, 2019. "Do country risk and financial uncertainty matter for energy commodity futures?," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 39(3), pages 366-383, March.
    12. Gyedu, Samuel & Heng, Tang & Ntarmah, Albert Henry & He, Yingqi & Frimppong, Emmanuel, 2021. "The impact of innovation on economic growth among G7 and BRICS countries: A GMM style panel vector autoregressive approach," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    13. Wanjun Xia & Buhari Doğan & Umer Shahzad & Festus Fatai Adedoyin & Abiodun Popoola & Muhammad Adnan Bashir, 2022. "An empirical investigation of tourism-led growth hypothesis in the European countries: evidence from augmented mean group estimator," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 21(2), pages 239-266, May.
    14. Saad Ahmed Javed & Sifeng Liu, 2018. "Predicting the research output/growth of selected countries: application of Even GM (1, 1) and NDGM models," Scientometrics, Springer;Akadémiai Kiadó, vol. 115(1), pages 395-413, April.
    15. Henry Laverde-Rojas & Juan C. Correa, 2019. "Can scientific productivity impact the economic complexity of countries?," Scientometrics, Springer;Akadémiai Kiadó, vol. 120(1), pages 267-282, July.
    16. Tânia Pinto & Aurora Teixeira, 2023. "Does scientific research output matter for Portugal’s economic growth?," GEE Papers 0174, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Jul 2023.
    17. Özşahin, Şerife & Üçler, Gülbahar, 2017. "Asymmetric Relationship between Institutional Quality and Remittance Inflows: Empirical Evidence for Turkey," Bulletin of Economic Theory and Analysis, BETA Journals, vol. 2(3), pages 189-204, July-Sept.
    18. Hongquan Shen & Juan Xie & Jiang Li & Ying Cheng, 2021. "The correlation between scientific collaboration and citation count at the paper level: a meta-analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(4), pages 3443-3470, April.
    19. Tânia Pinto & Aurora A. C. Teixeira, 2020. "The impact of research output on economic growth by fields of science: a dynamic panel data analysis, 1980–2016," Scientometrics, Springer;Akadémiai Kiadó, vol. 123(2), pages 945-978, May.
    20. Hamid Sepehrdoust & Mohsen Tartar & Razieh Davarikish, 2021. "Does Scientific Productivity Stimulate Intensified Technology Exports in Developing Economies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(4), pages 2111-2135, December.

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    More about this item

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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