The Effect of Research and Development on Economic Growth in Ethiopia: The Untapped Potential for Prosperity

Abstract

This research measured the links between R&D and economic growth in Ethiopia employing multiple regression models. Citable journal articles, patents, technology exports, and research expenditures are the four predictor variables that are the focus of the study. GDP per capita growth is the outcome variable of the study, which serves as a proxy indicator for economic growth. The study used a panel dataset with data from a sample of 21 years between 2001 and 2021. The results show a significant link between growth of GDP per capita and citable journal articles, patents, and technology exports, demonstrating that these factors are essential for fostering economic growth. However, government expenditure on research and development has no discernible impact on economic growth, which accordingly, raises the possibility that raising research spending by itself may not be sufficient to boost the economy. These findings have tremendous policy implications because they emphasize the importance of concentrating on particular R&D initiatives that have a direct impact on economic growth. The study adds to the existing frontiers of knowledge inline with the connection between R&D and economic growth by demonstrating the value of citation-worthy journals, patents, and technology exports in fostering economic growth.