Research No: 10

Research No: 10

Exploring the Empirical Linkages between Innovation, Economic Growth and Consumer Prices: Evidence from CPEC Countries

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Abstract

This study was conducted in order to investigate the empirical linkages between innovation, consumer prices and economic growth. China, India, Kazakhstan, Kyrgyzstan and Pakistan, which are in the China-Pakistan Economic Corridor (CPEC), were chosen as sample of the study. Annual Global Innovation Index Score (GIIS), Consumer Price Index Score (CPIS) and GDP per Capita (GDPPC) data of the relevant countries were accessed for the period from 2011 to 2020. Relevant data were evaluated with panel data methods. The regression analysis of the study showed that GIIS has a positive effect on GDPPC. Similarly, it has been found that GDPPC has a positive effect on GIIS. However, it has been determined that CPIS has a negative effect on GDPPC. The causality analysis results showed that there is unidirectional causality from GDPPC to CPIS in the long and short term. However, a bidirectional causality relationship has been determined between GDPPC and GIIS in the short run.

Keywords: Innovation, Consumer Prices, Economic Growth.

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Research No: 10

Exploring the Empirical Linkages between Innovation, Economic Growth and Consumer Prices: Evidence from CPEC Countries

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