IMPACT OF INNOVATION ON PAKISTAN'S GDP: THE MEDIATING ROLE OF SME GROWTH

Atif, Muhammad; Altaf, Yasir; Qadeem, Shah e Yar; Gul, Samina; Hassan, Syed Waleed ul

doi:10.5281/zenodo.16354077

Published December 31, 2024 | Version v1

Journal article Open

IMPACT OF INNOVATION ON PAKISTAN'S GDP: THE MEDIATING ROLE OF SME GROWTH

1. Department of Management Science Qurtaba University of Science and Information Technology, Peshawar, Pakistan atif_scholar2012@yahoo.com
2. PhD Scholar Lahore Business School The University of Lahore. yasirpak@hotmail.com
3. PhD Scholar and Lecturer Department of Management Sciences, Qurtaba University of Science and Information Technology, Peshawar, Pakistan shaheyar605@gmail.com
4. Associate Professor Lahore business School The university of Lahore Corresponding Author: samina_gul@ufg.br
5. Research Assistant Faculty of Business Administration Accountability and Economics Universidade Federal de Goias, Brazil wsyed68@yahoo.com

Contributors

Researcher (5):

1. Department of Management Science Qurtaba University of Science and Information Technology, Peshawar, Pakistan atif_scholar2012@yahoo.com
2. PhD Scholar Lahore Business School The University of Lahore. yasirpak@hotmail.com
3. PhD Scholar and Lecturer Department of Management Sciences, Qurtaba University of Science and Information Technology, Peshawar, Pakistan shaheyar605@gmail.com
4. Associate Professor Lahore business School The university of Lahore Corresponding Author: samina_gul@ufg.br
5. Research Assistant Faculty of Business Administration Accountability and Economics Universidade Federal de Goias, Brazil wsyed68@yahoo.com

Abstract

Pakistan can attain economic growth comparable to that of China, Malaysia, and Thailand thanks to its advantageous position, sizable market, and developments in productivity and innovation. With 38.5% of the workforce employed and 19.2% of the country's GDP coming from agriculture, Pakistan's economy depends heavily on this sector. The study analyzed economic indicators in Pakistan, focusing on GDP, Research and Development Expenditures (RDE), High Technology Exports (HTE), and the role of Small and Medium Enterprises (SMEs). Using secondary data from the World Development Indicators (WDI) 2024 and Pakistan Economic Survey (2000–2021), the analysis employed E-Views 12, SPSS 29 and Amos 29 to examine SME growth as a mediator. The study revealed significant direct effects of RDE on SME growth, while HTE's effect was not significant. Indirect effects showed that RDE positively impacted SMEs, but HTE's impact was not significant. A strong correlation between SMEs, RDE, and GDP highlighted SMEs' critical role in GDP growth. Policymakers are advised to promote R&D and high-tech exports to foster SME growth and economic development.

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