Munich Personal RePEc Archive (Ludwig Maximilian University of Munich) · 2014 · 20 citations · 27 references
This paper concentrates on the significance of Research and Development (R&D) for \neconomic growth in the developing economy of Pakistan. The paper also questioned the major \nmacro determinants of R&D in Pakistan. The study used time series data for the period 1971- \n2008. The results obtained from the Ordinary Squares method showed that R&D significantly \naffects the Real GDP per capita in Pakistan. Health, labour force , and Physical capital are \namong the other determinants of Real GDP per capita. The results further show that real GDP \nper capita and quality of educational institutions are the significant factors which affect R&D. \nThe Johansen Cointegration test confirmed the existence of long run relationship between R&D \nand economic growth. Similarly, R&D and its determinants were also found in long run \nrelationship.It is therefore recommended to increase investment in R&D to achieve sustained \neconomic growth. It is also recommended to collect and record quality R&D data for effective \npolicy making in the field of science and technology, and social sectors in Pakistan.
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