Impact of Research and Development on The Gdp Growth Rate of Nations: Evidence Using Panel Data

Abstract

This paper examines the relationship between Research and Development expenditure and the GDP growth of countries using data collected from 135 countries from 2008 to 2018. Previous research in this area has focused on a select group of countries at the researcher’s discretion, giving rise to sample bias. The current research paper has rectified the above problem by employing a larger sample of data comprising both developing and developed economies. The study employs static panel data regression analysis with R&D expenditure, the number of publications in scientific research journals, and population per sq. km as the independent variables and GDP growth of countries as the dependent variable. The results indicate a significant but negative impact of R&D expenditure on GDP growth. The research in this paper could help academicians critically examine the applicability of the endogenous growth model in the case of developing countries and gather more empirical evidence to support our conclusions.