The Internet, R&D expenditure and economic growth

ABSTRACT

We examine the effect of the Internet on the relationship between R&D expenditure and economic growth. Data for 105 countries over the period 1994–2014 are used for panel data analysis. The effect of R&D expenditure on economic growth proves to be affected positively by the Internet and the effect of the Internet on the economic growth is positively strengthened by an increase in R&D expenditure.

KEYWORDS:

• Internet
• R&D expenditure
• GDP growth
• fixed effects
• random effects
• panel GMM

JEL CLASSIFICATION:

• C23
• O30
• O40
• L86

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

¹ http://databank.worldbank.org; downloaded 9/4/2016, 19:22.