Does innovation serve as a strategy for economic development in the short or long term? Empirical evidence from OECD countries


Authors

  • Doan Quang Huy TNU-University of Economics and Business Administration
DOI: https://doi.org/10.57110/vnu-jeb.v4i3.360

Keywords:

Innovation, economic growth, Pooled Mean Group, foreign direct investment, OECD

Abstract

Using balanced panel data from 33 OECD countries over 23 years (1996-2018) and employing the Pooled Mean Group estimation method, this study assesses the impact of innovation on economic growth in both short-term and long-term contexts. The research findings affirm that innovation initially dampens growth in the short term but stimulates development in the long term. However, the results also indicate that countries must accept short-term growth to achieve greater long-term benefits. Particularly, foreign direct investment (FDI) and international economic integration strongly promote economic growth

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25-06-2024

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Doan Quang Huy. (2024). Does innovation serve as a strategy for economic development in the short or long term? Empirical evidence from OECD countries. VNU JOURNAL OF ECONOMICS AND BUSINESS, 4(3), 64. https://doi.org/10.57110/vnu-jeb.v4i3.360

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Original Article