Research output and economic growth in G7 countries: new evidence from asymmetric panel causality testing |
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| Authors: | Abdulnasser Hatemi-J Ahdi N. Ajmi Ghassen El Montasser Rangan Gupta |
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| Affiliation: | 1. Department of Economics and Finance, Faculty of Business and Economics, United Arab Emirates University, Al-Ain, UAE;2. College of Sciences and Humanities in Slayel, Salman bin Abdulaziz University, Riyadh, Kingdom of Saudi Arabia;3. Ecole supérieure de commerce de Tunis, University of Manouba, Tunis, Tunisia;4. Department of Economics, University of Pretoria, Pretoria, South Africa |
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| Abstract: | Recent studies have shown increasing interest on the relationship between research output and economic growth. The study of such a relationship is not only of theoretical interest, but it can also influence specific policies to improve the quality, and probably the quantity of research output. This article has studied this relationship in G7 countries using the asymmetric panel causality test of Hatemi-J (2011). Our results show that only the UK shows a causal relationship from the output of research to real GDP. However, when the signs of variations are taken into account, there is an asymmetric causality running from negative research output shocks to negative real GDP shocks. |
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| Keywords: | Research output real GDP asymmetric panel causality G7 |
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