Extended Threshold Error Correction Model of economic growth in Israel

The paper utilizes a comprehensive approach to threshold cointegration analyse the Israeli per capita Gross Domestic Product (GDP) growth dynamics. time-series data for years 1980–2019 are taken. study uses two-regime error correction model (TECM) test short- and long-term factors. results reveal that Research Development (R&D) expenses measured as percentage of GDP primary driving force in long short term. value 3.25% exhibits substantial difference between two regimes corresponding development phases economy. validated using various tests models. general conclusion is applied hierarchical procedure TECM construction robust universal modeling economic growth. allow formulation policy implications.