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R&D Expenditures and Economic Growth Relationship in Turkey

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  • Cuma BOZKURT

    (Department of Economics, The Faculty of Economics and Administrative Sciences, Gaziantep University, Gaziantep, Turkey.)

Abstract

In today's world, globalization has reached to such an extent that, investment in information and technology is inevitable to be integrated with global system and increase competitive power. Therefore, R&D investments are of high importance and priority for growth process of economy. This paper investigates the long-run relationship between R&D expenditure and economic growth using the Johansen co-integration and the vector error correction models. The research findings indicate that there is a unidirectional causal relationship running from economic growth to R&D. the long-run coefficients for the variable R&D is strongly statistically significant and has positive value. The growth rate of GDP will increase 0, 2630% if R&D shares in the GDP increases 1%.

Suggested Citation

  • Cuma BOZKURT, 2015. "R&D Expenditures and Economic Growth Relationship in Turkey," International Journal of Economics and Financial Issues, Econjournals, vol. 5(1), pages 188-198.
    • Handle: RePEc:eco:journ1:2015-01-15
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    2. Ramesh Chandra Das & Tonmoy Chatterjee, 2021. "Trade liberalization and R&D activity: examining long-run and short-run linkages for individual and panel of leading countries and groups," Economic Change and Restructuring, Springer, vol. 54(4), pages 1091-1118, November.
    3. Nair, Mahendhiran & Pradhan, Rudra P. & Arvin, Mak B., 2020. "Endogenous dynamics between R&D, ICT and economic growth: Empirical evidence from the OECD countries," Technology in Society, Elsevier, vol. 62(C).
    4. Ramesh Chandra Das & Sujata Mukherjee, 2020. "Do Spending on R&D Influence Income? An Enquiry on the World’s Leading Economies and Groups," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(4), pages 1295-1315, December.
    5. Mrutyunjaya SAHOO & Praveen SAHU, 2023. "Does the effectiveness of money supply and foreign direct investment determine the industrial growth performance in India?," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(635), S), pages 83-102, Summer.
    6. Muhammad Haseeb & Sebastian Kot & Hafezali Iqbal Hussain & Kittisak Jermsittiparsert, 2019. "Impact of Economic Growth, Environmental Pollution, and Energy Consumption on Health Expenditure and R&D Expenditure of ASEAN Countries," Energies, MDPI, vol. 12(19), pages 1, September.
    7. Ibrahim Akoum, 2016. "Research, Development and Innovation in Malaysia: Elements of an Effective Growth Model," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 6(7), pages 390-403, July.
    8. Bayram Veli Doyar, 2019. "R&D expenditures by field of science and GDP: Which causes which in Canada?," Economics and Business Letters, Oviedo University Press, vol. 8(1), pages 31-40.
    9. Ramesh Chandra Das, 2020. "Interplays among R&D spending, patent and income growth: new empirical evidence from the panel of countries and groups," Journal of Innovation and Entrepreneurship, Springer, vol. 9(1), pages 1-22, December.
    10. Begüm Erdil Şahin, 2015. "The Relationship Between R&D Expenditures and Economic Growth: Panel Data Analysis 1990-2013," EY International Congress on Economics II (EYC2015), November 5-6, 2015, Ankara, Turkey 207, Ekonomik Yaklasim Association.
    11. Xiangfei Ma & Inna Gryshova & Viktoriia Khaustova & Olena Reshetnyak & Maryna Shcherbata & Denys Bobrovnyk & Mykyta Khaustov, 2022. "Assessment of the Impact of Scientific and Technical Activities on the Economic Growth of World Countries," Sustainability, MDPI, vol. 14(21), pages 1-35, November.
    12. Chandrashekar Raghutla & Krishna Reddy Chittedi, 2021. "Financial development, real sector and economic growth: Evidence from emerging market economies," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 6156-6167, October.
    13. Mariana SEHLEANU & Ramona SIMUT & Ciprian SIMUT, 2021. "Economic Growth And R&D Expenditure In Romania. An Empirical Research," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(1), pages 231-242, November.
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    More about this item

    Keywords

    R&D Expenditures; Economic Growth; Turkey; Co-integration;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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