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Nair-Reichert, U.; Weinhold, D.; (2001) Causality tests for cross-country panels: a new look at FDI and economic growth in developing countries. Oxford Bulletin of Economics and Statistics, 63 (2) pp. 153-171.

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Article

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

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

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


International Journal of Econometrics and Financial Management. 2014, Vol. 2 No. 1, 7-21
DOI: 10.12691/ijefm-2-1-2
Copyright © 2014 Science and Education Publishing

Cite this paper:
Tarek Sadraoui, Tarek Ben Ali, 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.

Correspondence to: Tarek  Sadraoui, Quantitative Method, Higher Institute of business Administration, Gafsa, Tunisia. Email: tarek.sadraoui@gmail.com

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.

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