International Journal of Social and Management Studies (IJOSMAS)
Vol. 3 No. 2 (2022): International Journal of Social and Management Studies (IJOSMAS)

Innovation Factors and its Effect on the GDP Per Capita of Selected ASEAN Countries: An Application of Paul Romer's Endogenous Growth Theory

Apostol, Matthew (Unknown)
Enriquez, Hans Angelo (Unknown)
Sumaway, Odette (Unknown)
Navarrete, Al Faithrich (Unknown)



Article Info

Publish Date
01 Feb 2022

Abstract

Romer’s endogenous growth theory highlighted the importance of intentional actions and efforts made by firms to cultivate a culture of innovation and ideas and its eventual effects on economic growth. This study aims to measure whether there is a positive relationship between innovation using Urbanization (URB), research and development (R&D), and human capital (HC) oneconomic growth. Innovation will be represented by the URB rate per percentage in total population, research and development (R&D), and HC will be assessed using its GlobalInnovation Index ratings. Economic growth will be measured using the Log of Gross Domestic Product (LGDP) per capita. This study will utilize a panel data regression, Pooled Ordinary LeastSquare analysis, to determine the relationship in the selected Association of Southeast Asian Nations countries (Indonesia, Malaysia, Philippines, Vietnam) between the years 2013-2020. Results show that URB and HC significantly impact LGDP per capita, while R&D is insignificant. The insignificance found in this study can be explained by the fact that the countries selected aredeveloping countries and that it would take time for R&D to impact their economic growth. Despite the insignificant impact of R&D activities, they should still be actively promoted in these countries, as it will gradually increase the level of innovation with time as explained in the long-run increasing returns of scale and the endogenous growth theory, thus proves Romer’s theory is present in Indonesia, Malaysia, Philippines, Vietnam.

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Journal Info

Abbrev

ijosmas

Publisher

Subject

Religion Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Industrial & Manufacturing Engineering Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice

Description

International Journal of Social and Management Studies (IJOSMAS) is a peer-reviewed bimonthly journal that publishes empirical, conceptual and review papers of exceptional quality that contribute to enrich business administration thinking .The objective of the Journal is to disseminate knowledge, ...