Effect of FDI, R & D, and High-Tech Exports on Real Gross Domestic Product (GDP) of Pakistan and Canada over the Period of 1982-2011

Document Type: Original Research

Authors

1 College of Economics And Management Huazhong Agricultural University of China

2 Government Degree College, Madyan Swat, Pakistan

3 Government Degree, College Madyan Swat, Pakistan

Abstract

Innovation is coming from new Knowledge, and new Technology. The author select these two countries because Canada has a very strong innovative economy, while Pakistan is not so strong. The study concludes that foreign direct investment, R&D, and High-tech exports have a positive impact on economic growth, and the results show a significant positive impact on GDP, in the case of Canada. While in Pakistan this influence is not significant due to some internal problems that Pakistan faces like a low rate of domestic investment, political instability, less investment in higher education. Therefore, the comparison can be useful in adapting Canada’s innovation policy for Pakistan.

Keywords


Almus, M., & Nerlinger, E. A. (1999). Growth of new technology-based firms: which factors matter? Small Business Economics, 13(2), 141-154. doi: 10.1023/A:1008138709 724.
Bottazzi, G., Dosi, G., Lippi, M., Pammolli, F., & Riccaboni, M. (2001). Innovation and corporate growth in the evolution of the drug industry. International Journal of Industrial Organization, 19(7), 1161-1187. doi: https://doi.org/10.1016/S0167-7187(01) 00068-6.
Folkeringa, M., Meijaard, J., & van Stel, A. (2004). Strategic Renewal and its Effect on Small Firm Performance: Testing for Firm Size Effects Using Dutch Micro Data. New Perspectives on firm Growth” 1st Inter-RENT Online Publication, 88-112.
Grossman, G. M., & Helpman, E. (1991). Innovation and Growth in the Global Economy. MIT Press, Cambridge MA.
Kirchhoff, B. A., Armington, C., Hasan, I., & Newbert, S. (2002). The Influence of R&D Expenditures on New Firm Formation and Economic Growth. National Commission on Entrepreneurship, Washington, DC.
Lööf, H., & Heshmati, A. (2008). Investment and Performance of Firms: Correlation or causality? Corporate Ownership & Control, 6(2), 268-282.
Oliveira, B., & Fortunato, A. (2005). Firm Growth and Persistence of Chance: Evidence from Portuguese Microdata. ESTUDOS DO GEMF Working Papers 2005/10.
Rodríguez-Pose, A., & Crescenzi, R. (2008). Research and development, spillovers, innovation systems, and the genesis of regional growth in Europe. Regional Studies, 42(1), 51-67.
Teece, D. J. (1986). Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy. Research Policy, 15(6), 285-305. doi: https://doi.org/10.1016/0048-7333(86)90027-2.
Torun, H., & Çiçekçi, C. (2007). Innovation: is the engine for the economic growth? Ege University. The Faculty of Economics and Administrative Sciences Economics IV, 1-54.
Wei, Y., & Liu, X. (2006). Productivity Spillovers from R&D, Exports and FDI in China's Manufacturing Sector. Journal of International Business Studies, 37(4), 544-557.
Wu, Y. (2006). R&D and Productivity: An Empirical Study on Chinese Manufacturing Industry. Economic Research Journal, 11, 60-71.
Wu, Y. (2009). R&D, Technology Transfer and Productivity Growth: Evidence from Chinese Manufacturing Industries. Unpublished manuscript, Institute of Economics, Chinese Academy of Social Sciences.
Wu, Y. (2010). Innovation and Economic growth in China. Discussion Paper 10.10. The University of Western Australia.