Causality between Technological Innovation and Economic Growth: Evidence from the Economies of Developing Countries

Mohamed, Maha Mohamed Alsebai; Liu, Pingfeng; Nie, Guihua

doi:10.3390/su14063586

Cited by 68 publications

(35 citation statements)

References 66 publications

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“…For technological innovation, from our research it is evident that technological innovation contributes positively to economic growth, however, the long run effects are positive but not statistically significant, whereas the short-run effects are both positive and statistically significant. In conventional economics, the latent period of technological development has often been ignored and viewed as black box in economic scenarios of technological change (Mohamed et al 2022 ). From the initial invention, through core technology development and new product development, to the development of market strategies, this is a first attempt at a comprehensive description of the innovation paradigm.…”

Section: Empirical Results and Discussionmentioning

confidence: 99%

“…Because foreign direct investment brings with it new and modern technology, which may not be commercially available in host countries (Uddin 2022 ). In contrast, host countries are able to increase their production thanks to foreign direct investment, particularly since innovative companies do not wish to sell their technologies to local businesses directly (Mohamed et al 2022 ). A number of global companies have expanded their business in Bangladesh in recent years due to political stability and a wealth of infrastructure development.…”

Section: Empirical Results and Discussionmentioning

confidence: 99%

“…The issues that researchers are addressing are that the economic construction of a society may expand over time to meet its needs, increasing the economy's ability to produce goods and services. A sustainable economic growth in the country results in a higher national income and more employment, resulting in a higher standard of living (Mohamed et al 2022 ). Therefore, the literature review part is broken down following (Udeagha and Ngepah 2022a , b , c ) into four sub-sections.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Technology, innovation and economic growth have been examined in a number of recent studies, and numerous examples of countries were studied with a positive influence of technological innovation on their economic growth. Mohamed et al ( 2022 ) applied the error correction model (ECM) method, together with co-integration tests and Granger's causality test to measure how technological innovation has affected economic growth in developing countries. Another research by Mohamed et al ( 2021 ) examined the relationship between technological innovation, foreign direct investment, and economic growth in Egypt between 1990 and 2019, utilizing a simultaneous integration test of the autoregressive distributed lag model.…”

Section: Literature Reviewmentioning

confidence: 99%

See 3 more Smart Citations

Do technological innovation, foreign investment, trade and human capital have a symmetric effect on economic growth? Novel dynamic ARDL simulation study on Bangladesh

Rahman

Zhang

Musa

2023

Econ Change Restruct

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Bangladesh's economy has flourished a great deal during recent years, establishing itself as an enthralling market. This country's remarkable growth trajectory can be attributed to technological innovation, foreign direct investment, trade and human capital, all of which have significant impacts on its economic growth. Bangladesh's economic development has been poorly explored in previous studies due to the lack of integration between these dynamics. Does the question arise whether this growth factors have a symmetrical or non-symmetrical effect on Bangladesh's economic growth and policymaking? We conducted this study with the primary objective of evaluating how technological innovation, foreign direct investment, trade, and human capital affect Bangladesh's economic development. Based on time series data years spanning 1990 to 2020, this study used the dynamic ARDL simulation method to accomplish its objective. This novel approach allows users to examine possible counterfactual changes in variables based on the ceteris paribus theory, as well as to test cointegration, long- and short-run symmetric associations between variables. Research findings indicate that technological innovation and human capital have a long-run symmetric relationship with Bangladesh’s economic development. There is a significant correlation found between economic growth and all variables in the short run. To further check the robustness of the study we employed the nonlinear ARDL approach. Therefore, this study can undoubtedly be used by policymakers and the government as a basis for prioritizing and encouraging critical policy changes that will improve Bangladesh's economic development.

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Section: Empirical Results and Discussionmentioning

confidence: 99%

Section: Empirical Results and Discussionmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Do technological innovation, foreign investment, trade and human capital have a symmetric effect on economic growth? Novel dynamic ARDL simulation study on Bangladesh

Rahman

Zhang

Musa

2023

Econ Change Restruct

View full text Add to dashboard Cite

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“…The size and rate of economic growth are of considerable interest to governments and the public. The growth of the economy is related to numerous factors (Jolo et al 2022;Krugman 1991;Mohamed et al 2022;Ziberi et al 2022). One crucial factor for each country is the commercial relations with its neighbors.…”

Section: Introductionmentioning

confidence: 99%

Mathematical Modeling of Physical Capital Diffusion Using a Spatial Solow Model: Application to Smuggling in Venezuela

et al. 2022

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This study proposes a mathematical modeling approach for the physical capital diffusion through the borders of countries. Physical capital is considered a crucial variable for the economic growth of a nation. Here, we use an extension of the economic Solow model to describe how smuggling affects the economic growth of countries. In particular, we focus on the situation in Venezuela from 2012 to 2015. In this regard, we rely on a nonconcave production function instead of the classical Cobb–Douglas production function. Moreover, we investigate the effect of different physical capital fluxes on economic growth. The physical capital diffusion through the borders of a country is modeled based on a parabolic partial differential equation describing the dynamics of physical capital and boundary conditions of the Neumann type. Smuggling is present at numerous borders between countries and may include fuel, machinery, and food. This smuggling through the borders places challenges on a particular country’s economy. The smuggling problem usually is related to a non-official exchange rate different from the official rate or subsidies. We study the effect of smuggling on the physical capital of a country using an extended Solow model. Numerical simulations are obtained using an explicit finite difference scheme describing how the physical capital diffusion through the border of a country affects its economic growth. The study of physical capital is a paramount aspect of the economic growth of several countries. The results show that when boundary conditions of Neumann type are different from zero, the dynamics of the physical capital differ from the classical economic behavior observed in the classical spatial Solow model without physical capital flux through the borders of countries. In particular, the numerical results show that the physical capital of a country decreases faster as the flux increases on the boundaries. Thus, we can conclude that avoiding smuggling through the frontiers is a crucial factor affecting economic growth.

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Path to sustainable development: Can industrial intelligence and technological innovation balance economic growth and environmental quality in China?

Yin,

Zeng

2024

Sustainable Development

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Intelligent industrial transformation and technological innovation fuel China's sustainable development. We examine whether industrial intelligence and technological innovation improve economic growth and environmental quality using provincial data from China from 2006 to 2020. We used panel co‐integration techniques (fully modified OLS and dynamic OLS) for analysis. The results showed that industrial intelligence drives economic growth and environmental quality, whereas technological innovation primarily promotes economic growth. We also found that green technological innovation improves economic growth and environmental quality. The Granger causality technique based on the vector error‐correction model showed a strong interrelationship among industrial intelligence, technological innovation, economic growth, and environmental quality. Furthermore, a heterogeneity analysis shows that the effects and interrelationships of the variables of interest vary significantly by region in China. To achieve sustainable development, the government should accelerate the transformation of industrial intelligence, invest in environment‐friendly technological innovation activities, and focus on the co‐development of industrial intelligence, technological innovation, economic growth, and environmental quality.

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Causality between Technological Innovation and Economic Growth: Evidence from the Economies of Developing Countries

Cited by 68 publications

References 66 publications

Do technological innovation, foreign investment, trade and human capital have a symmetric effect on economic growth? Novel dynamic ARDL simulation study on Bangladesh

Do technological innovation, foreign investment, trade and human capital have a symmetric effect on economic growth? Novel dynamic ARDL simulation study on Bangladesh

Mathematical Modeling of Physical Capital Diffusion Using a Spatial Solow Model: Application to Smuggling in Venezuela

Path to sustainable development: Can industrial intelligence and technological innovation balance economic growth and environmental quality in China?

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