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The Effect Of R & D Spending On The Middle Income Trap: Panel Data Analysis

Author

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  • Muhammed KARANFÄ°L

    (Çanakkale Onsekiz Mart Üniversitesi/TÜRKİYE)

Abstract

Middle-income trap expresses that the middle income group of countries have not reached high income group due to inability creating sufficient infrastructure development process in literature. Technological infrastructure-based R & D is increasing in order to get high income group for countries. Aim of study is an assessment of the role R & D on MIT for European Union and Turkey. In this paper effect of R & D on MIT was investigated for EU-28 and Turkey. Relationship among per capita income, R & D and savings were analyzed by using Westerlund Bootstrap Westerlund Durbin-Hausman cointegration and Hacker ve Hatemi-J bootstrap causality in panel data analysis. Among variables was found long-term relationship result of study. There is unidirectional causality was found from per capita income to R & D. But no causality effect was found from R & D to per capita income, and between other variables as well.

Suggested Citation

  • Muhammed KARANFÄ°L, 2016. "The Effect Of R & D Spending On The Middle Income Trap: Panel Data Analysis," JOURNAL OF LIFE ECONOMICS, Holistence Publications, vol. 3(4), pages 219-234, October.
  • Handle: RePEc:jle:journl:v:3:y:2016:i:4:p:219-234
    DOI: 10.15637/jlecon.146
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