Knowledge in the economic growth of developing economies

Abstract

In the modern era, the success of a developing economy has become more dependent on the capacity to produce and use knowledge, which leads to the emergence of a knowledge economy. Keeping in view the significance of the knowledge economy in the economic growth of economies, in the present study an attempt has been made to examine the inter-country differences across the selected developing economies. In addition to it, to analyse the impact of knowledge on economic level as well as on economic growth across 42 selected developing economies, regression analysis was applied. The results of the study reveal that there is positive correlation between the knowledge economy index and economic level, but there is very weak marginal effect of the knowledge economy on economic growth.

Keywords:

• innovations
• knowledge-based economy
• economic growth
• developing countries

JEL classification:

• D83
• Q55
• R58

Acknowledgements

The authors benefitted from the comments and suggestions from the anonymous referees of the journal on an earlier draft of the paper. The authors express their gratefulness to the referees of the journal and the chief editors. However, the errors and omissions are the sole responsibility of the authors.