TECHNOLOGICAL INNOVATION AND PRODUCTION EFFICIENCY: EVIDENCE FROM ARAB ECONOMIES IN A GLOBAL CONTEXT

ROTABI, Sareh and ABAZI-ALILI, Hyrije (2026) TECHNOLOGICAL INNOVATION AND PRODUCTION EFFICIENCY: EVIDENCE FROM ARAB ECONOMIES IN A GLOBAL CONTEXT. In: INTERNATIONAL CONFERENCE “FROM RESEARCH TO APPLICATION”, 20 May, 2026.

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Abstract

This study explores the relationship between technological innovation and production efficiency across Arab economies within a comparative global framework. Utilizing panel data covering the period 2011-2024, the analysis assesses how innovation inputs, determined by the Global Innovation Index (GII) Input Sub-Index, impact economic performance, proxied by GDP per capita. The study implements fixed-effects econometric models to account for cross-country heterogeneity and incorporates key control variables such as research and development expenditure, trade openness, foreign direct investment, population size, gross capital formation, and political stability. The results indicate that technological innovation does not have a statistically significant direct impact on production efficiency across countries, recommending that innovation alone may not translate into immediate economic gains. Yet, the degree of this relationship differs between Arab and non-Arab economies, as well as between GCC and non-GCC countries, mirroring differences in institutional structures and innovation ecosystems. Robustness checks utilizing GII Output Sub-Index ensure the consistency of the results. This study contributes to the literature by offering empirical evidence on the role of innovation in forming economic performance in the Arab region within a global context. The results provide important policy implications for supporting innovation systems and improving productivity to support sustainable economic development.

Item Type: Conference or Workshop Item (Paper)
Subjects: Q Science > Q Science (General)
Depositing User: Unnamed user with email zshi@unite.edu.mk
Date Deposited: 04 Sep 2026 12:53
Last Modified: 04 Sep 2026 12:53
URI: http://eprints.unite.edu.mk/id/eprint/2371

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