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The Impact of Knowledge-based Economy on the Economic Growth of Middle Eastern Countries
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Abstract
Due to environmental unsustainability and a lack of research and development (R&D) and training and education expenditures, countries' economic growth (EG) has recently encountered several obstacles. These difficulties require the attention of researchers. This study evaluates the impact of the knowledge-based economy (R&D expenditures, government education expenditures, and highly educated workforce) on the EG of Middle Eastern nations. The impact of control variables such as population increase and industrialisation on EG was also analyzed. From 2006 through 2020, the article extracts secondary data from World Development Indicators (WDI). The relationship between variables was examined using the fixed effect model (FEM) and the robust standard error approach. Results demonstrated that R&D spending, government education expenditures, labor force with advanced education, population growth, and industrialization have a favorable and significant effect on the economic growth of Middle Eastern nations. The article assists policymakers in formulating policies for enhancing EG by increasing the government's budget for R&D, training, and education.
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