Reassessing the role of technology for economic growth: A comparative study of Asian developing economies

Muhammad Khalid Shahid, Aye Aye Khin, Lim Chee Seong, Raed Saud Altayyar, Low Mei Peng

Article ID: 7348
Vol 8, Issue 11, 2024

VIEWS - 1354 (Abstract)

Abstract


The role of technology in stimulating economic growth needs to be reexamined considering current heightened economic conditions of Asian developing Economies. This study conducts a comparative analysis of technology proxied by R&D expenditures alongside macroeconomic variables crucial for economic growth. Monthly time-series data from 1990 to 2019 were analyzed using a vector error correction model (VECM), revealing a significant impact of technology on the economic growth of India, Pakistan, and the Philippines. However, in the cases of Indonesia, Malaysia, Thailand, and Bangladesh, macroeconomic indicators were found more crucial to their economic growth. Results of Granger causality underlined the relationship of R&D expenditures and macroeconomic variables with GDP growth rates. Sensitivity analyses endorsed robustness of the results which highlighted the significance and originality of this study in economic growth aligned with sustainable development goals (SDGs) for developing countries.


Keywords


sustainable economic growth; R&D expenditure; macroeconomics; granger causality; ex-post forecast

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DOI: https://doi.org/10.24294/jipd.v8i11.7348

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