Investigating the Effect of Research and Development (R&D) Costs on Economic Growth: Panel Data Approach

Research and development (R&D) are of the most key elements in progressing knowledge, increasing productivity and motivating economic growth. Consequently, the aim of the current study was to investigate the effect of R&D costs on economic growth. To this end, two groups of countries, 16 middle-income countries and 16 high-income countries during the period 2015-2007 were selected and analyzed through World Bank s statistical data and they were modelled using the framework of the panel data approach through Stata software. The research results indicated the significant and positive effect of R&D costs on economic growth.

Keywords:

Research and development (R&D) , Economic Growth , Countries with high and middle income , Panel Data