Mayis Gulaliyev

The impact of research and development (R&D) expenditure is crucial for understanding contemporary economic development strategies. This study investigates the relationship between R&D spending as a percentage of GDP and economic growth, focusing on the South Caucasus countries (Azerbaijan, Georgia, and Armenia) and Israel, which is notable for its substantial R&D expenditure (5.71% of GDP in 2020). The objective is to evaluate the impact of R&D expenditure on economic development through the application of rigorous empirical methods. By employing a quantitative approach, this study aims to offer a detailed analysis of the impact of R&D investment on economic growth across various countries. Ordinary least squares (OLS) regression analyzes the association between R&D expenditure and GDP levels. Granger causality tests are utilized to investigate the causal relationships. The results demonstrate a significant positive relationship between R&D expenditure and GDP across all studied countries. Furthermore, the analysis reveals that GDP growth stimulates increased R&D investments in Azerbaijan and Armenia, as evidenced by Granger causality tests. To sum up, this paper underscores the critical role of R&D spending in driving economic development and highlights the necessity for policy initiatives focused on strengthening R&D frameworks.

Type of the article: Research Article

Abstract
Crime remains a significant socio-economic issue, shaped by social instability and economic inequality, and poses critical challenges for public administration and policymaking. In Azerbaijan, rising divorce rates and persistent income disparities have become prominent social concerns, with the former reflecting shifts in family structure and the latter captured by the Gini index as a measure of income inequality. This study explores the causal relationships between crime, income inequality, and divorce rates in Azerbaijan from 2000 to 2021, utilizing econometric methodologies. From a public administration perspective, the study provides empirical insights to support more effective and targeted interventions in crime prevention, social protection, and family policy. Methodologically, the Johansen cointegration test is applied to identify long-term equilibrium relationships among the variables, while the Toda-Yamamoto Granger causality test is employed to examine the directional causality. The cointegration analysis reveals stable long-term associations between crime, income inequality, and divorce, with trace statistics (32.172, 16.067, and 4.052) exceeding their respective critical values at the 5% significance level. Additionally, the Toda-Yamamoto test shows that income inequality significantly influences crime (χ² = 5.145, p = 0.023), with divorce exhibiting a stronger predictive relationship with crime (χ² = 7.071, p = 0.007). These findings underscore the necessity for integrated crime prevention strategies, emphasizing the role of public administration in designing and implementing coherent socio-economic policies.