The Impact of Global Innovation on Economic Growth in Developing Countries
Keywords:Innovation, economic growth, developing countries, Labor Force, Total, capital, trade openness, Schumpeter
The study aimed at identifying the effect of innovation on economic growth in developing countries, relying on it determinants, namely fixed capital formation, labor force, trade openness and the global innovation index (GII). The study relied on panel data for 32 developing countries covering the period (2011-2018). The FMOLS methodology was adopted to estimate the relationships between the above Mentionedvariables. The study disclosed a positive and statistically significant relationship between economic growth and each offixed capital formation, labor force and the global innovation index (GII). However, trade openness was statistically insignificant. The reached several conclusion regarding the efficiency of innovation to enhance growth such as, creating a suitable environment for institutions to work in, enhancing the effectiveness of education, increasing expenditure on scientific research, optimal investment in human capital, freeing markets, encouraging the increase in the size of business and innovation output also . The study recommended that developing countries should focus intensely on translating innovation policies into national strategies, which can have a positive effect on economic growth.
Todaro, Michel (2006), Economic Development, translated by Muhammad Hosni, Mahmoud Hamed, Al-Merikh Publishing House, Riyadh, Saudi Arabia..
AL-Koda, Nasser Atallah, (2018) The impact of commercial openness on economic growth and poverty in Jordan, University of Jordan, Jordan, unpublished doctoral thesis in Economic..
Mayouf, Muhammad Khalifa, Economic Growth between Theories and Reality, Nasser University International Journal, Issue 2, Libya, pp. 114-127.
Lewis, A. (1955).The Theory of Economic Growth, Routledge Taylor & Francis Group, London and New York.
Siggel, E. (2016). Development Economics: A policy Analysis Approach, Routledge, Taylor & Francis Group, London and New York.
Wilczyński,J. (1972).Socialist Economic Development and Reforms, Palgrave Macmillan.
Acemoglu, D. (2009). Introduction to Modern EconomicGrowth, Princeton university press.
Tadaro, M. (1997). Economic Development in the Third world, longmanIne, New York.
Hess, P. (2013).Economic Growth and Sustainable Development, Routledge, Tyalor& Francis Group, London and New York.
Michl, T. (2015). Macroeconomic Theory: A short course, Routledge, Taylor & Francis Group, London and New York.
Romer, P. (1986). Increasing Returns and Long run Growth, Journal ofPoliticalEconomy, Vol.94, No.5, PP: 1002-1037.
Kyophilavong, P. Ogawa, K. Kim, B. Nouansavanh, K. (2018). Does Education Promote Economic Growth In Lao PDR? Evidence FromCointegration And Granger Causality Approaches, The Journal Of Developing Areas, Nashville Vol. 52, Iss. 2,PP: 1-11.
Kaplan, E. Akçoraoğlu,A .(2017).Alpaslan Political Instability, Corruption, And Economic Growth: Evidence From A Panel Of Oecd Countries, Business And Economics Research Journal, Bursa Vol. 8, Iss. 3, PP: 363-377.
Yongjin, S.(2011). Government Size, Economic Growth And Unemployment: Evidence From Advanced And Developing Economy Countries(A Time Series Analysis, 1996-2006), International Review OfPublic Administration; Seoul Vol. 16, Iss. 2, PP: 95-116.
Phillips,P.(1995) Fully Modified Least Squares and Vector Autoregression, Econometrica, Vol. 63,Iss.5 , 1023-1078.
Belazreg,W .Mtar,K .(2020). Mobelling the Causal Linkages between Trade Openness, Innovation, Financial Development and Economic Growth in OECD Countries, Applied Economic Letters, Vol.27, NO.1, PP: 5-8.
Schumpeter,J .(1949). The Theory of Economic Development, Harvard University Press.
Schumpeter,J.(1923).BusinessCycles,McGRAW-HILL Book Company,INC,Vol I.
Thompson,M.(2018). Social Capital, Innovation and Economic Growth; Journal of Behavioral and Experimental Economics; Vol 73 PP: 46-52.
Maradana,R. Pradan,R. Dash,S. Zaki,D. Gaurav,K. Jayakumar,M. Sarangi,A.(2019). Innovation and Economic Growth in European Economic Area Countries: The Granger Causality Approach; IIMB Management Review, Vol 31 ,Iss 3 PP: 268-282.
Yousef,E. Warrad,T.(2020). The Determinants of Economic Growth in Selected Arab Countries over the Period 1998-2017,Jordan Journal of Economic Sciences, Vol 7, No,1,PP: 91-108.
Bryant,C. Javalg,R.(2018). Motivating Entrepreneurial Activity in MENA Region:Do Human Capital and Corruption Matter?,KnE Social Sciences, Vol 3, Iss 10, PP: 39-53.
Baumol,W.(2015). Joseph Schumpeter: The Long Run, and the Short, Journal of Evolutionary Economics, Vol. 25, Iss.1, PP:37-43.
Aghion,P. Festre,A. (2017). Schumpeterian Growth Theory, Schumpeter, and Growth Policy Design,Journal of Evolutionary Economics, Vol. 27, Iss.1, PP:25-42.