The Impact of Technological Achievement on Economic Growth: Evidence from a Panel ARDL Approach

Abstract

In recent times, technological innovations among nations are the most powerful instrument for higher\reconomic growth rates and development. A higher level of achievement in the diffusion/adoption of technology can\rcreate more effective economic growth. Given this motivation, the study aims to examine the impact of technological\rachievements on economic growth, gross capital formation, medium and high-tech exports, and employment in chosen\r72 countries over the period of 1990 - 2020. The unit root tests of the cross-section augmented Im-Pesaran-Shin (CIPS)\rtest of Pesaran and also covariate Augmented Dickey-Fuller (CADF) test of Hansen, the Pedroni cointegration test,\rand then Pesaran ARDL model has been applied in the analysis of the data. The ARDL model results reveal a\rstatistically significant causality and positive relationships between the technology achievement index and GDP\rgrowth, gross capital formation, medium and high-tech exports, and employment significance at 1 percent level in the\rlong run according to Pooled Mean Group (PMG) estimator. Consequently, technological innovations are linked with\reconomic growth and macroeconomic factors, that is to say, to get higher growth needs to grow up adaptation of\rtechnology and also to produce and trade technology-specific products.