Evaluating the heterogeneous effects of knowledge-based economy indicators on economic well-being in selected Islamic countries: A quantile regression approach

Subject Areas :

Tahereh Rajaee ¹ , Mehrzad Ebrahimi ²

1 - Department of Management and Economics, Islamic Azad University, Shiraz branch, Iran
2 - Assistant Professor, Department of Management and Economics, Islamic Azad University, Shiraz branch, Iran

Received: 2025-02-09 Accepted : 2025-04-06 Published : 2025-07-01

Keywords: Quantile regression, knowledge-based economy, economic welfare, economic development, quantitative method, research and development, information and communication technology, higher education, innovation, gross domestic product,

Abstract :

Today, the world's economies are rapidly acquiring more knowledge; so that the level of knowledge participation in economic processes has increased so much, and the move towards a knowledge-based economy has had a significant impact on the growth and production of countries' economies and, as a result, their economic well-being. In this regard, the aim of the study in question is to examine the heterogeneity of the effect of knowledge-based economy indicators (including investment in research and development, information and communication technology development, higher education, and innovation) on economic well-being in selected Islamic countries, using the quantile regression method. The required data for the period (2010-2023) were extracted from official and reliable sources, and the panel data were analyzed using this method in quantiles 0.1 and 0.9. The findings show that the information and communication technology development index has the most positive effect in both quantiles, while the effect of other indicators is significantly higher in the quantile 0.9. Also, GDP also has a positive effect on economic well-being. These results suggest that policymakers should pay attention to the heterogeneity of the impact of these indicators at different levels of economic well-being when designing economic development strategies. It is recommended that ICT development be considered for all levels and that a focus on R&D, higher education, and innovation be considered for higher levels of economic well-being. Keywords: Quantile regression, knowledge-based economy, economic well-being, economic development, quantitative method, research and development, information and communication technology, higher education, innovation, gross domestic product.

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