International Journal of Econometrics and Financial Management
ISSN (Print): 2374-2011 ISSN (Online): 2374-2038 Website: http://www.sciepub.com/journal/ijefm Editor-in-chief: Tarek Sadraoui
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International Journal of Econometrics and Financial Management. 2014, 2(1), 7-21
DOI: 10.12691/ijefm-2-1-2
Open AccessArticle

Economic Growth and International R&D Cooperation: A Panel Granger Causality Analysis

Tarek Sadraoui1, , Tarek Ben Ali2 and Bechir Deguachi2

1Quantitative Method, Higher Institute of business Administration, Gafsa, Tunisia

2Economic Sciences, Higher Institute of business Administration, Gafsa, Tunisia

Pub. Date: January 10, 2014

Cite this paper:
Tarek Sadraoui, Tarek Ben Ali and Bechir Deguachi. Economic Growth and International R&D Cooperation: A Panel Granger Causality Analysis. International Journal of Econometrics and Financial Management. 2014; 2(1):7-21. doi: 10.12691/ijefm-2-1-2

Abstract

This paper will investigate the Granger causality between R&D cooperation and economic growth in 32 industrial and developing countries from 1970 to 2012. We use an innovative econometric method which is based on a panel test of the Granger non causality hypothesis. Using a new method to evaluate causality in a heterogeneous panel, we find that the causal relationship from R&D cooperation to economic growth is homogeneous among the panel. However, we find strong evidence of a heterogeneity of the causal relationship from economic growth to R&D cooperation in our sample. Results provide support for a robust causality relationship from economic growth to R&D cooperation. On the contrary, the non causality hypothesis from R&D cooperation to economic growth can’t be rejected in most of the cases. However, these results only imply that, if such a relationship exists, it can’t be easily identified in a simply bi-variate Granger causality test.

Keywords:
Granger Causality Tests dynamic panel data R&D cooperation economic growth spillovers

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