Positive and Negative Effects of Research and Development

Authors

  • Mohd Shahidan Shaari Universiti Malaysia Perlis
  • Diana Nabila Chau Abdullah Universiti Malaysia Sabah
  • Nur Salimah Alias Universiti Malaysia Perlis
  • Nor Syamimi Mohamed Adnan Universiti Malaysia Perlis

Abstract

This study aims to examine the effects of research and development expenditure on economic growth and carbon dioxide emission in the panel data for the period of 1996-2011 from 5 nations (Germany, Russian Federation, United Kingdom, United States and Canada). The panel co-integration was conducted and the results show that there is co-integrated relationship among the variables (R&D, GDP, Energy Use and Carbon Dioxide Emission). Then the FMOLS test was performed and the findings explain that energy use and R&D are the determinants of GDP. Results from FMOLS show that energy use and R&D are the determinants of GDP. Energy use and GDP are the determinants of carbon dioxide emission. Results from DOLS show that R&D is important to boost economic growth while energy use, GDP and R&D can have deleterious effects on carbon dioxide emission. Therefore, it is important to control the R&D expenditure to balance economic growth and environmental conservation.

Keywords: R&D, Economic Growth, Carbon Dioxide Emission

JEL Classifications: O32, Q40, Q50

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Author Biographies

Mohd Shahidan Shaari, Universiti Malaysia Perlis

School of Business Innovation and Technopreneurship

Diana Nabila Chau Abdullah, Universiti Malaysia Sabah

Faculty of Business, Economics and Accountancy

Nur Salimah Alias, Universiti Malaysia Perlis

School of Human Development and Technocommunication

Nor Syamimi Mohamed Adnan, Universiti Malaysia Perlis

School of Human Development and Technocommunication

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Published

2016-10-21

How to Cite

Shaari, M. S., Abdullah, D. N. C., Alias, N. S., & Adnan, N. S. M. (2016). Positive and Negative Effects of Research and Development. International Journal of Energy Economics and Policy, 6(4), 767–770. Retrieved from https://www.econjournals.com/index.php/ijeep/article/view/2978

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