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

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  • 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.

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  • 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
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    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. Sumaira Saeed & Miraj ul Haq & Arshad Ali Bhatti, 2024. "The Role of Moderators on Product Quality and Export Flows: The Case of Pakistan," Journal of Economic Impact, Science Impact Publishers, vol. 6(1), pages 27-36.
    3. 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.
    4. 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.
    5. 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.

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    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

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