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THE EFFECT OF RESEARCH AND DEVELOPMENT (R&D) EXPENDITURES ON EXPORT: EVIDENCE FROM A PANEL OF SELECTED OECD COUNTRIES

Year 2018, Volume: 5 Issue: 3, 234 - 241, 30.09.2018

Abstract

Purpose- R&D activities help countries to gain competitive power and thus achieve economic growth. The purpose of this paper is to analyze the effect of R & D activities on exports for 16 OECD countries using data from the period 2000-2015.

Methodology- Pedroni (1999) and Kao (1999) panel cointegration tests were used to test whether there is a long-term relationship between variables. In order to be able to do the cointegration analysis, the stationary of the variables considered should be determined. The unit root examination is conducted using four unit root tests; namely, the Levin, Li and Chu; Im, Pesaran and Shin W-stat; Fisher-ADF and Fisher-PP. Panel FMOLS and DOLS estimators were used to obtain long run coefficients after the cointegration relation was detected.

Findings- As a result of Pedroni and Kao cointegration test, it has been found that there is a long term relationship between R & D expenditures and exports. Both Panel FMOLS and Panel DOLS test results show that the sign of R & D expenditures is positively and statistically significant. According to the Panel FMOLS test results, a 1% increase in R & D expenditures leads to a 0.45% increase in exports. Similarly, according to Panel DOLS test results, 1% increase in R & D expenditures increases exports by 0.43%.

Conclusion- The results showed that the effect of R & D expenditures on exports is positive. Results obtained in the study are consistent with existing findings in the literature.

References

  • Akiş, E. (2015). Innovation and competitive power. Procedia - Social and Behavioral Sciences 195, 1311-1320.
  • Bojnec, S., Ferto I. (2011). Impacts of researchand development on manufacturing trade. Proceedings of Rijeka Faculty of Economics, 29 (1), 65–88.
  • Braunerhjelm, P., Thulin, P. (2006). Can countries create comparative advantages?. Centre of Excellence for Studies in Science and Innovation (CESIS), Electronic Working Paper Series, Working Paper No. 61.
  • Choi, I. (2001). Unit root tests for panel data. Journal of International Money and Finance, 20, 249-272.
  • Çetin, R. (2016). Yeni sanayileşen ülkelerde Ar-Ge harcamaları ve yüksek teknoloji ürünü ihracatı arasındaki ilişkinin panel veri analizi yöntemi ile incelenmesi. İktisat Fakültesi Mecmuası, 66 (2), 30-43.
  • Esteve-Pérez, S., Rodríguez, D. (2013). The dynamics of exports and R&D in SMEs. Small Business Economics, 41(1), 219–240.
  • Girma, S., Görg, H., Hanley, A. (2008). R&D and exporting: a comparison of British and Irish firms. Review of World Economics, 144 (4), 750-773.
  • Gozgor, G., Lu, C. K. M., Lau, Z. (2018). Energy consumption and economic growth: new evidence from the OECD countries. Energy, 153, 27-34.
  • Göçer, İ. (2013a). Ar-Ge harcamalarının yüksek teknolojili ürün ihracatı, dış ticaret dengesi ve ihracat üzerindeki etkileri. Maliye Dergisi, 165, 215-250.
  • Göçer, İ. (2013b). Teknolojik ilerlemenin belirleyicileri: NIC ülkeleri için panel eşbütünlesme ve panel nedensellik analizleri. Maliye Finans Yazıları, 100, 116–141.
  • Gülmez, A. (2015). OECD ülkelerinde ekonomik büyüme ve hava kirliliği ilişkisi: panel veri analizi. Kastamonu Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 9, 18-29.
  • Güzel, S. (2009). Ar-Ge harcamaları ve vergi teşvikleri: belirli ülkeler karşısında Türkiye’nin durumu. Eskişehir Osmangazi Üniversitesi İİBF Dergisi, 4 (2), 29-48.
  • Im, K. S., Pesaran, M. H., Shin, Y. (2003). Testing for unit roots in heterogeneous panels. Journal of Econometrics, 115(1), 53-74.
  • Kao, C. (1999). Spurious regression and residual-based tests for cointegration in panel data. Journal of Econometrics, 90, 1-44.
  • Kılıç, C., Bayar Y., Özekicioğlu H. (2014). Araştırma geliştirme harcamalarının yüksek teknoloji ürün ihracatı üzerindeki etkisi: G–8 ülkeleri için bir panel veri analizi. Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 44, 115-130.
  • Landesmann, M., Pfaffermayr, M. (1997). Technological competition and trade performance. Applied Economics, 29 (2), 179-196.
  • Levin, A. , Lin, C. F., Chu, C. (2002). Unit root tests in panel data: asymptotic and finite sample properties. Journal of Econometrics, 108 (1), 1-24.
  • Maddala, G. S., Wu, S. (1999). A comparative study of unit root tests with panel data and a new simple test. Oxford Bulletin of Economics and Statistics, 61 (S1), 631-652.
  • Neves, A., Teixeira, A. A. C., Silva, S. T. (2016). Exports- R & D investment complementarity and economic performance of firms located in Portugal. Investigación Económica, 75(295), 125-156.
  • Özer, M., Çiftçi, N. (2009). Ar-Ge harcamaları ve ihracat ilişkisi: OECD ülkeleri panel veri analizi. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, 23, 39-49.
  • Özkan, G., Yılmaz, H. (2017). Ar-Ge harcamalarının yüksek teknoloji ürün ihracatı ve kişi başı gelir üzerindeki etkileri: 12 AB ülkesi ve Türkiye için uygulama (1996-2015). Bilgi Ekonomisi ve Yönetimi Dergisi, 12(1), 1-12.
  • Pedroni, P. (1999). Critical values for cointegration tests in heterogeneous panels with multiple regressors. Oxford Bulletin of Economics and Statistics, 61(S1), 653-670.
  • Pedroni, P. (2000). Fully-modified OLS for heterogeneous cointegrated panels. Advances in Econometrics, 15, 93-130.
  • Pedroni, P. (2001). Purchasing power parity tests in cointegrated panels. Review of Economics and Statistics, 83, 727-731.
  • Pradeep, V., Bhattacharya, M., Chen J. R. (2017). Spillover effects of research and development, exports and foreign investment on productivity: empirical evidence from Indian manufacturing. Journal of South Asian Development, 12(1), 18-41.
  • Sandu, S., Ciocanel, B. (2014). Impact of R&D and innovation on high-tech export. Procedia Economics and Finance, 15, 80-90.
  • Svensson, R. (2008). Growth through research and development. Swedish Government Agency for Innovation Systems Report, https://www.vinnova.se/contentassets/409b49574a5440c884eac129b dd65e8c/vr-08-19.pdf
  • Sungur, O., Aydın H. İ., Eren, M. V. (2016). Türkiye’de Ar-Ge, inovasyon, ihracat ve ekonomik büyüme arasındaki ilişki: asimetrik nedensellik analizi. Süleyman Demirel Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 21(1), 173-192.
  • Şahbaz, A., Yanar, R., Adıgüzel, U. (2014). Ar-Ge harcamaları ve ileri teknoloji mal ihracatı ilişkisi: panel nedensellik analizi. Ç.Ü. Sosyal Bilimler Enstitüsü Dergisi, 23(1), 47-60.
  • Şen, A., Şentürk M., Özkan, G., Ducan, E. (2014). External determinants of economic growth in developing countries: panel data analysis. Marmara Üniversitesi İ.İ.B. Dergisi, 36(1), 15-28.
  • Tatoğlu, F. Y. (2012). İleri panel veri analizi stata uygulamalı. Beta Basım Yayım Dağıtım A.Ş., İstanbul.
  • Türker, O. (2018). G-7 ülkelerinde Ar-Ge harcamalarının ihracat üzerindeki etkisi. 12-14 Nisan, Nevşehir IERFM Uluslararası Ekonomi Araştırmaları ve Finansal Piyasalar Kongresi Bildiri Kitabı, 351-363.
  • Uzay, N., Demir, M., Yıldırım E. (2012). İhracat performansı açısından teknolojik yeniliğin önemi: Türkiye imalat sanayi örneği. Doğuş Üniversitesi Dergisi, 13(1), 147-160.
  • Yıldırım, E., Kesikoğlu F. (2012). Ar-Ge harcamaları ile ihracat arasındaki nedensellik ilişkileri: Türkiye örneğinde panel nedensellik testi kanıtları. Marmara Üniversitesi İİBF Dergisi, 32 (1), 165-180.
  • Yüksel, S. (2017). The impacts of research and development expenses on export and economic growth. International Business and Accounting Research Journal, 1(1), 1-8.
Year 2018, Volume: 5 Issue: 3, 234 - 241, 30.09.2018

Abstract

References

  • Akiş, E. (2015). Innovation and competitive power. Procedia - Social and Behavioral Sciences 195, 1311-1320.
  • Bojnec, S., Ferto I. (2011). Impacts of researchand development on manufacturing trade. Proceedings of Rijeka Faculty of Economics, 29 (1), 65–88.
  • Braunerhjelm, P., Thulin, P. (2006). Can countries create comparative advantages?. Centre of Excellence for Studies in Science and Innovation (CESIS), Electronic Working Paper Series, Working Paper No. 61.
  • Choi, I. (2001). Unit root tests for panel data. Journal of International Money and Finance, 20, 249-272.
  • Çetin, R. (2016). Yeni sanayileşen ülkelerde Ar-Ge harcamaları ve yüksek teknoloji ürünü ihracatı arasındaki ilişkinin panel veri analizi yöntemi ile incelenmesi. İktisat Fakültesi Mecmuası, 66 (2), 30-43.
  • Esteve-Pérez, S., Rodríguez, D. (2013). The dynamics of exports and R&D in SMEs. Small Business Economics, 41(1), 219–240.
  • Girma, S., Görg, H., Hanley, A. (2008). R&D and exporting: a comparison of British and Irish firms. Review of World Economics, 144 (4), 750-773.
  • Gozgor, G., Lu, C. K. M., Lau, Z. (2018). Energy consumption and economic growth: new evidence from the OECD countries. Energy, 153, 27-34.
  • Göçer, İ. (2013a). Ar-Ge harcamalarının yüksek teknolojili ürün ihracatı, dış ticaret dengesi ve ihracat üzerindeki etkileri. Maliye Dergisi, 165, 215-250.
  • Göçer, İ. (2013b). Teknolojik ilerlemenin belirleyicileri: NIC ülkeleri için panel eşbütünlesme ve panel nedensellik analizleri. Maliye Finans Yazıları, 100, 116–141.
  • Gülmez, A. (2015). OECD ülkelerinde ekonomik büyüme ve hava kirliliği ilişkisi: panel veri analizi. Kastamonu Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 9, 18-29.
  • Güzel, S. (2009). Ar-Ge harcamaları ve vergi teşvikleri: belirli ülkeler karşısında Türkiye’nin durumu. Eskişehir Osmangazi Üniversitesi İİBF Dergisi, 4 (2), 29-48.
  • Im, K. S., Pesaran, M. H., Shin, Y. (2003). Testing for unit roots in heterogeneous panels. Journal of Econometrics, 115(1), 53-74.
  • Kao, C. (1999). Spurious regression and residual-based tests for cointegration in panel data. Journal of Econometrics, 90, 1-44.
  • Kılıç, C., Bayar Y., Özekicioğlu H. (2014). Araştırma geliştirme harcamalarının yüksek teknoloji ürün ihracatı üzerindeki etkisi: G–8 ülkeleri için bir panel veri analizi. Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 44, 115-130.
  • Landesmann, M., Pfaffermayr, M. (1997). Technological competition and trade performance. Applied Economics, 29 (2), 179-196.
  • Levin, A. , Lin, C. F., Chu, C. (2002). Unit root tests in panel data: asymptotic and finite sample properties. Journal of Econometrics, 108 (1), 1-24.
  • Maddala, G. S., Wu, S. (1999). A comparative study of unit root tests with panel data and a new simple test. Oxford Bulletin of Economics and Statistics, 61 (S1), 631-652.
  • Neves, A., Teixeira, A. A. C., Silva, S. T. (2016). Exports- R & D investment complementarity and economic performance of firms located in Portugal. Investigación Económica, 75(295), 125-156.
  • Özer, M., Çiftçi, N. (2009). Ar-Ge harcamaları ve ihracat ilişkisi: OECD ülkeleri panel veri analizi. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, 23, 39-49.
  • Özkan, G., Yılmaz, H. (2017). Ar-Ge harcamalarının yüksek teknoloji ürün ihracatı ve kişi başı gelir üzerindeki etkileri: 12 AB ülkesi ve Türkiye için uygulama (1996-2015). Bilgi Ekonomisi ve Yönetimi Dergisi, 12(1), 1-12.
  • Pedroni, P. (1999). Critical values for cointegration tests in heterogeneous panels with multiple regressors. Oxford Bulletin of Economics and Statistics, 61(S1), 653-670.
  • Pedroni, P. (2000). Fully-modified OLS for heterogeneous cointegrated panels. Advances in Econometrics, 15, 93-130.
  • Pedroni, P. (2001). Purchasing power parity tests in cointegrated panels. Review of Economics and Statistics, 83, 727-731.
  • Pradeep, V., Bhattacharya, M., Chen J. R. (2017). Spillover effects of research and development, exports and foreign investment on productivity: empirical evidence from Indian manufacturing. Journal of South Asian Development, 12(1), 18-41.
  • Sandu, S., Ciocanel, B. (2014). Impact of R&D and innovation on high-tech export. Procedia Economics and Finance, 15, 80-90.
  • Svensson, R. (2008). Growth through research and development. Swedish Government Agency for Innovation Systems Report, https://www.vinnova.se/contentassets/409b49574a5440c884eac129b dd65e8c/vr-08-19.pdf
  • Sungur, O., Aydın H. İ., Eren, M. V. (2016). Türkiye’de Ar-Ge, inovasyon, ihracat ve ekonomik büyüme arasındaki ilişki: asimetrik nedensellik analizi. Süleyman Demirel Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 21(1), 173-192.
  • Şahbaz, A., Yanar, R., Adıgüzel, U. (2014). Ar-Ge harcamaları ve ileri teknoloji mal ihracatı ilişkisi: panel nedensellik analizi. Ç.Ü. Sosyal Bilimler Enstitüsü Dergisi, 23(1), 47-60.
  • Şen, A., Şentürk M., Özkan, G., Ducan, E. (2014). External determinants of economic growth in developing countries: panel data analysis. Marmara Üniversitesi İ.İ.B. Dergisi, 36(1), 15-28.
  • Tatoğlu, F. Y. (2012). İleri panel veri analizi stata uygulamalı. Beta Basım Yayım Dağıtım A.Ş., İstanbul.
  • Türker, O. (2018). G-7 ülkelerinde Ar-Ge harcamalarının ihracat üzerindeki etkisi. 12-14 Nisan, Nevşehir IERFM Uluslararası Ekonomi Araştırmaları ve Finansal Piyasalar Kongresi Bildiri Kitabı, 351-363.
  • Uzay, N., Demir, M., Yıldırım E. (2012). İhracat performansı açısından teknolojik yeniliğin önemi: Türkiye imalat sanayi örneği. Doğuş Üniversitesi Dergisi, 13(1), 147-160.
  • Yıldırım, E., Kesikoğlu F. (2012). Ar-Ge harcamaları ile ihracat arasındaki nedensellik ilişkileri: Türkiye örneğinde panel nedensellik testi kanıtları. Marmara Üniversitesi İİBF Dergisi, 32 (1), 165-180.
  • Yüksel, S. (2017). The impacts of research and development expenses on export and economic growth. International Business and Accounting Research Journal, 1(1), 1-8.
There are 35 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Yasemin Dumrul 0000-0001-5961-2931

Zerrin Kilicarslan 0000-0002-0905-3067

Publication Date September 30, 2018
Published in Issue Year 2018 Volume: 5 Issue: 3

Cite

APA Dumrul, Y., & Kilicarslan, Z. (2018). THE EFFECT OF RESEARCH AND DEVELOPMENT (R&D) EXPENDITURES ON EXPORT: EVIDENCE FROM A PANEL OF SELECTED OECD COUNTRIES. Journal of Economics Finance and Accounting, 5(3), 234-241.

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