THE IMPACT OF FINANCIAL DEVELOPMENT ON RESEARCH AND DEVELOPMENT (R&D) EXPENDITURES IN BRICS-T COUNTRIES

Abstract

This study examines the impact of financial development on research and development (R&D) expenditures in BRICS-T countries (Brazil, Russia, India, China, South Africa, and Turkey) during the period 2003–2020 using panel data analysis. The findings reveal that financial development has a positive and statistically significant effect on R&D expenditures. A 1% increase in the financial development index leads to an approximate 0.65% increase in R&D expenditures. Furthermore, per capita income also positively affects R&D expenditures. These results reveal that the sophistication of the financial system plays a key role in increasing innovation capacity and that the sustainability of R&D investments in emerging economies largely depends on access to financial markets. The study presents findings consistent with previous research in the literature and emphasizes the importance of the relationship between financial development and R&D investments for policymakers, particularly in the context of BRICS-T countries. Deepening financial markets, activating venture and private equity funds, and ensuring financial stability stand out as key policy areas that will encourage R&D investments.

Keywords

• Financial Development
• R&D Expenditures
• BRICS-T Countries
• Panel Data Analysis
• Innovation

BRICS-T ÜLKELERİNDE FİNANSAL GELİŞMENİN ARAŞTIRMA VE GELİŞTİRME (AR-GE) HARCAMALARI ÜZERİNE ETKİSİ

Abstract

Bu çalışma, 2003–2020 döneminde BRICS-T ülkelerinde (Brezilya, Rusya, Hindistan, Çin, Güney Afrika ve Türkiye) finansal gelişmenin araştırma ve geliştirme (Ar-Ge) harcamaları üzerindeki etkisini panel veri analizi yöntemiyle incelemektedir. Elde edilen bulgulara göre, finansal gelişmenin Ar-Ge harcamaları üzerinde pozitif ve istatistiksel olarak anlamlı bir etkisi bulunmaktadır. Finansal gelişme endeksindeki %1’lik artış, Ar-Ge harcamalarının yaklaşık %0,65 oranında artmasına yol açmaktadır. Ayrıca kişi başına gelir düzeyi de Ar-Ge harcamalarını pozitif yönde etkilemektedir. Bu sonuçlar, finansal sistemin gelişmişliğinin inovasyon kapasitesini artırmada kilit rol oynadığını ve yükselen ekonomilerde Ar-Ge yatırımlarının sürdürülebilirliğinin büyük ölçüde finansal piyasalara erişim imkânlarına bağlı olduğunu ortaya koymaktadır. Çalışma, literatürdeki önceki araştırmalarla uyumlu bulgular sunmakta ve özellikle BRICS-T ülkeleri bağlamında finansal gelişme ile Ar-Ge yatırımları arasındaki ilişkinin politika yapıcılar için önemini vurgulamaktadır. Finansal piyasaların derinleştirilmesi, girişim ve risk sermayesi fonlarının etkinleştirilmesi ve finansal istikrarın sağlanması, Ar-Ge yatırımlarını teşvik edecek temel politika alanları olarak öne çıkmaktadır.

Keywords

• Finansal Gelişme
• Ar-Ge Harcamaları
• BRICS-T Ülkeleri
• Panel Veri analizi
• İnovasyon

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