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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. Zhiguang Zhang & Haiqing Hu & Xin Zhao & Yangrui Bai, 2022. "Dynamic Influences of FDI and R&D Expenditures on IT Business Value: An Empirical Test from China," Sustainability, MDPI, vol. 14(17), pages 1-16, September.
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    4. 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.
    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. 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.
    7. 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.
    8. 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.
    9. 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).
    10. 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.
    11. 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.
    12. Alin-Ionuț Dorobanțu, 2020. "Analysis Of The Relationship Between Innovation And Performance. The Case Of Romania Versus The Countries Of Western Europe," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 1(48), pages 87-98, August.
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    14. 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.

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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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