Technological Endogeneity and Growth Trajectories: A Comparative Analysis of Türkiye and South Korea’s Economic Journeys

Year 2025, Volume: 75 Issue: 1, 117 - 136, 14.07.2025

Sena Göncüler , Dilek Demirbaş

https://doi.org/10.26650/ISTJECON2025-1522483

Abstract

The sources of differences in the growth and welfare of countries in the globalising world have been a long-standing topic of debate. In the economic growth literature, numerous studies have explored these sources, yet there is still no clear consensus. One of the most prominent fields regarding the sources of growth and the welfare of nations is the endogenous growth theory introduced in the 1990s. The effects of technological development, a standout achievement of the modern era, on economic growth have led to the discovery of many substantial sources related to the growth and welfare of countries, integrated into popular culture via endogenous growth theories. This study aims to enhance the understanding of the endogenous growth theory by exploring the interplay between technology and economic development across various countries and variables. The primary motivation is to examine potential technologydriven disparities in nations’ growth and welfare levels. The main research question is whether countries pursuing endogenous growth policies experience more sustainable and higher-quality growth compared to others. To answer this question, the study examines the effects of technology endogenization on Türkiye and South Korea, two countries that had similar economic conditions in the past but now show significant differences. Using ARDL Cointegration Analysis and covering the period from 1990 to 2020, the evidence demonstrates that South Korea achieved more stable and higher-quality growth due to its policy of endogenizing technology. In contrast, Türkiye has not succeeded in this area and needs improvements.

JEL Classification : C32 , O30

Keywords

Endogenous growth , Technology , ARDL analysis

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