Effect of Foreign R&D on Social Welfare Index in Sanctioned Countries

Achievement to higher levels of economic welfare has always been one of the strategic purpose of developing countries. Despite of the large number of studies done in the field of cognition factors affecting economic welfare indicators there is still no general agreement on the main factors influencing. This research shows that a large part of cause is ignoring the technology gap between developing and developed countries. Because of welfare in developing countries is strongly influenced by technology imports from developed countries. The present study investigates the effect of foreign R&D spillovers on the welfare of sanctioned countries during the period 2000 to 2016 using the econometric method of data panel estimation. TheF results show that the interaction effect of foreign R&D spillovers on human capital has a positive and significant effect on Sen’s Social Welfare Index and a 1% increase in the interaction of foreign R&D spillovers on human capital leads to a 10% increase in Sen’s Social Welfare Index. Also, government expenditures, per capita income and inflation have a positive and significant effect on Sen’s Social Welfare Index, and each percent increase in these variables leads to 9, 94 and 19 percent increase in Sen’s Social Welfare Index, respectively. The dummy variable of sanction has a negative relationship with the Sen’s Social Welfare Index, but its coefficient is not significant.