The Relationship Between R&d Spending

Abstract

The study aimed to explore the relationship between R&D expenditures and economic growth in South Korea during the period 1996-2021 by examining and measuring the impact of independent variables: R&D spending, gross fixed capital formation, and domestic credit to the private sector on the dependent variable, GDP growth, as an indicator of economic growth. The study relied on data from the World Bank and employed the non-linear autoregressive distributed lag model (NARDL) for econometric analysis. Key results indicate an asymmetric long-term relationship between R&D expenditures and economic growth. The study also reveals an asymmetric long-term relationship between growth and gross fixed capital formation (GFCF) and a symmetric relationship between growth and domestic credit to the private sector (DCP). However, the results indicate a symmetric relationship between R&D and growth in the short term.