Fennee Chong
Research and Development Expenditure, Gross National Income
The rapid pace of industrial transformation into knowledge-based economy model worldwide has prompted ASEAN countries to respond by strengthening their research and development investment in the past decade. The objective of the study is to examine whether this new economic paradigm improves the general wealth of the people in these countries. To achieve this goal, long-run relationship between R&D expenditure and the gross national income of five major ASEAN countries from 2001 to 2010 are analyzed. The econometric evidence of this study suggests the presence of long-run cointegration relationship between these two variables. Findings indicate that higher research and development activity has a positive effect on the wealth for the countries under study.
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