Cover
Volume 7, Special Issue 4 (2026)

Published: August 25, 2026

Pages: 61-74

Research Article

Economic Indicators of Innovation in South Korea: An Analytical Model of Lessons Learned and Opportunities for Arab Economies (Iraq, Jordan, Egypt

Noor A. M. Al-Abbas 1 Alia H. K. Al-Zarkoushi 2 Ahmed A. Hammadi 3
1Presidency of the University, University of Samarra, Salah Al-Din, Iraq
2College of Administration and Economics, University of Diyala, Diyala, Iraq
3College of Administration and Economics, University of Fallujah, Al-Anbar, Iraq
History
  • Received: June 13, 2026
  • Available Online: August 25, 2026
DOI

https://doi.org/10.56967/ejfb2026919

Abstract

This research aims to analyze the asymmetric impact of the Global Innovation Index (GII) on Gross Domestic Product (GDP) growth in South Korea over the period (2004–2024). It further explores the potential for adapting this experience within the economies of Iraq, Egypt, and Jordan. Utilizing a Nonlinear Autoregressive Distributed Lag (NARDL) model, the study examines the dynamics of this relationship in both the short and long runs. The empirical findings reveal a nonlinear cointegration relationship, indicating that the South Korean economy exhibits hyper-sensitivity toward negative innovation shocks. Specifically, a 1% negative shock in innovation leads to a growth contraction of approximately 1.65%, whereas the growth response to positive shocks does not exceed 0.33%. Furthermore, CUSUM and CUSUMQ tests confirmed the structural stability of the model over two decades. The research concludes that the innovation gap in the studied Arab countries necessitates policies that support innovation budgets to ensure the stability of structural growth parameters, independent of fluctuations in traditional sectors.

Keywords

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