Abstract

In this paper, we use the systematic, descriptive, and statistical approaches; fill the gap in the Arab literature; and examine the incidence and transfer of knowledge in the Arab countries. Our findings support the first hypothesis that the components of knowledge show positive correlation with economic growth and hence can be used to enhance economic growth and promote human capital in the Arab countries. Our results corroborate the second and third hypotheses that the incidence and transfer of knowledge can be enhanced by institutional support in the form of subsidies and incentives to knowledge components (education, R&D, and ICT). The major policy implication from our findings is that the Arab countries should stimulate local efforts and incentives for building and transferring knowledge and should pay more attention to enhance and support the institutions for the creation and transfer of knowledge and for building the knowledge economy in the Arab countries.

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