Modelling the economic cycle between GDP and government spending on technological innovation
Document Type
Article
Publication Date
1-1-2017
Abstract
Gross Domestic Product (GDP) is a key indicator of a country’s economic growth and its well-being. Technological innovation on the other hand is an important driver of growth for productivity and revenue. This paper examines the relationship between GDP per capita and government spending on technology innovation in Malaysia. on in Malaysia. It employs Augmented Dickey-Fuller (ADF) test, Vector Autoregression (VAR) model and variance decomposition to measure the estimation models. The results point to a strong positive relationship between GDP per capita and the expenditure on technology innovation. Furthermore, GDP has a large impact on Malaysia’s government spending on technology innovation.
Keywords
Augmented dickey-fuller test, Gross domestic product, Technology innovation, Variance decomposition, Vector autoregression mode
Divisions
Faculty_of_Business_and_Accountancy
Publication Title
Pertanika Journal of Social Sciences and Humanities
Volume
25
Issue
Nov
Publisher
Universiti Putra Malaysia