Abstract:
F rom the viewpoint of economic theories, total factor productivity (TFP) is the most important component that leads to economic growth and development. The main purpose of this study was to evaluate the impact of knowledge-based economy on total factor productivity in the member countries of the Middle East and North Africa (MENA) region. For this purpose, the panel data regression analysis has been designed to analyze the effect of knowledge-based economy components on total factor productivity in 14 member countries of MENA region for the period of 1995-2012. the results show that the growth of knowledge-based economy index such as education (coefficient= 0.51), information and communication technology ICT (coefficient= 0.31), innovation (coefficient= 0.62), and economic incentive and institutional regime (coefficient= 1.05) have positive and significant effects on total factor productivity of middle east and north africa (MENA) member countries for the time period of the study.
Machine summary:
Many economists believe that the knowledge economy is the latest stage of development in global economic restructuring, which has been marked by the upheavals in technological innovations and the globally competitive need for innovation with new products and processes that develop from the research community, R&D factors, universities, labs, and educational institutes.
The World Bank defined and calculated indices of the variables of economic incentive and institutional regime, innovation, education, information, and communication technology (ICT), which are major components of Knowledge Economy Index for many countries since 1995.
In the second model, to evaluate and compare the effectiveness of the subsets of knowledge-based economy (major components), indicators of economic incentive and institutional regime, innovation, education, information, and communication technology (ICT) are considered an independent variable; and the impact of these variables on the total productivity of the factors of production is examined.
TFPit = β0 + β1KEIit + εit (3) TFPit = β0 + β1ICTit + EDit + EIit + INit + εit (4) In equations (3) and (4), the variables are defined as: TFP: total factor productivity KEI: knowledge-based economy index ICT: information and communication technology ED: education EI: indicators of economic incentive and institutional regime IN: innovation Further, based on the data published by the World Bank for the years of 1995 to 2012, separated for 14 member countries of the MENA region, panel data were formed, and the generalized least square (GLS) method was used to estimate the intended coefficients.