Analyzing the Effect of Knowledge-based Economy Indices on Countries’ GDP

Abstract

The increasing importance of the role of knowledge in economy has led to “Knowledge-based economy”. Knowledge-based economy can be considered as a kind of economy in which the creation and application of knowledge play a major role in creating wealth. Accordingly, the main purpose of this paper is to investigate the effect of knowledge-based economy indices on countries’ gross domestic production (GDP). In line with the main aim of the paper, five hypotheses have been proposed. From the viewpoint of the objective, the research is of applied and developmental type, and from the viewpoint of the nature of procedure, it is descriptive. The statistical population includes all the countries whose degree of knowledge-based economy is available in the database of the World Bank. The number of these countries, according to the database, is 148. In order to analyze the data, we used Kolmogorov-Smirnov and regression tests. The results indicate that human development, economic regimes and economic incentives, innovation systems, education and human resources, and information infrastructures have a direct effect on countries’ GDP.

Keywords

• knowledge-based economy
• gdp
• human development index