Authors
1 Faculty member of Islamic Azad University, Firoozkooh Branch
2 Expert of Tehran Management and Planning Organization
Abstract
Research and Development expenditures in process of development and progress of economies are very important. Therefore this paper tries to determine effect of R&D expenditures on economic growth rate in the set of different countries of the world. This study has estimated the causal relation between GNP growth rate, and R&D expenditures, fiscal investment, and growth rate of labor force of countries during 1991-95. By using the World Bank data, we have estimated our model for groups of high income and lower income countries. We found that the R&D activities have significant and great effect on GNP growth rate in all countries, especially in developing countries.
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