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The Relationship between R&D Expenditures and Economic Growth for Some Developed and Developing Countries: A Panel Data Analysis

Year 2017, , 149 - 166, 31.01.2017
https://doi.org/10.17233/sosyoekonomi.288873

Abstract

The main purpose of this paper is to investigate the relationship between research and development (R&D) expenditures and economic growth, based on 26 some developed and developing countries (Belgium, Bulgaria, Czech Republic, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Hungary, Latvia, Netherland, Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Finland, Sweden, United Kingdom, Iceland, Norway). For this purpose, we used endogenous growth model of Romer (1990), which claims that technological change is the major source of productivity growth in the long run. Inthiscontext, usingannualdatawhich has taken from Eurostat; an empirical model has beendeveloped in the scope of the dynamic panel data analysis forth-period 1996- 2014. The model includes real gross domestic product per capita (GDPRC) and gross domestic expenditures on R&D as an indicator of technological change (innovation). At the empirical part, firstly heterogeneity of the variables were investigate during the Delta test (Pesaran ve Yamagata, 2008), and then the existence of dependency between cross-sectional units that make series were examined by the CADF and Hadri-Kurozumi tests. After proving cointegration between series with Westurlund ECM test; Dumitrescu-Hurlin (2012) and Emirmahmutoğlu-Köse (2011) panel causality tests were applied. According to the empirical results, in the long term there is one way causal relationship from R&D expenditures to economic growth for some selected developed and developing countries.

References

  • Aghio, P. & P. Howitt (1992), “A Model of Growth through Creative Destruction”, Econometrica, 60(2), 323-331.
  • Akçalı, B.Y. & E. Şişmaoğlu (2015), “Innovation and the Effect of Research and Development Expenditure on Growth in Some Developing and Developed Countries”, Social and Behavioral Sciences, 195, 768-775.
  • Altın, O. & A.A. Kaya (2009), “Türkiye’deAr-Ge Harcamaları ve Ekonomik Büyüme Arasındaki Nedensellik İlişkisininAnalizi”, Ege Akademik Bakış, 9(1), 251-259.
  • Barcenilla‐Visús, S. & J.M. Gómez‐Sancho & C. López‐Pueyo & M.J. Mancebón & J. Sanaú (2013), “Technical Change, Efficiency Change and Institutions: Empirical Evidence for a Sample of OECD Countries”, Economic Record, 89(285), 207-227.
  • Bozkurt, M. (2015), “R&D Expenditures and Economic Growth Relationship in Turkey”, International Journal of Economics and Financial Issues, 5(1), 188-198.
  • Breusch, T.S. & A.R. Pagan (1980), “The Lagrange Multiplier Test and Its Application to Model Specifications in Econometrics”, Review of Economic Studies, 47, 239-253.
  • Chang, Y. (2004), “Bootstrap Unit Root Tests in Panels with Cross-sectional Dependency”, Journal of Econometrics, 120, 263-293.
  • Emirmahmutoğlu, F. & N. Köse (2011), “Testing for Granger Causality in Heterogeneous Mixed Panels”, Economic Modelling, 28, 870-876.
  • Genç, A.C. & Y. Atasoy (2010), “The Relationship between R&D Expenditures and Economic Growth: Panel Data Analysis”, The Journal of Knowledge Economy and Knowledge Management, 5, 27-34.
  • Goel, R.K. & E.P. James & R. Rati (2008), “R&D Expenditures and U.S. Economic Growth: A Disaggregated Approach”, Journal of Policy Modeling, 30(2), 237-250.
  • Göçer, İ. (2013), “Ar-Ge Harcamalarının Yüksek Teknolojili Ürün İhracatı, Dış Ticaret Dengesi ve Ekonomik Büyüme Üzerine Etkileri”, Maliye Dergisi, 165, 215-240
  • Grossman, G.M. & E. Helpman (1991a), Innovation and Growth in the Global Economy, Cambridge Mass: MIT Press.
  • Grossman, G.M. & E. Helpman (1991b), “Quality Ladders in the Theory of Growth”, The Review of Economic Studies, 58(1), 43-61.
  • Grossman, G.M. & E. Helpman (1991c), “Quality Ladders and Product Cycles”, The Quarterly Journal of Economics, 106(2), 557-586.
  • Guellec, D. & B. Pottelsberghe (2001), “R&D and Productivity Growth: Panel Data Analysis of 16 OECD Countries”, OECD Economic Studies, 33(2), 103-126.
  • Gülmez, A. & F. Yardımcıoğlu (2012), “OECD Ülkelerinde Ar-Ge Harcamaları ve Ekonomik Büyüme İlişkisi: Panel Eşbütünleşme ve Panel Nedensellik Analizi 1990-2010)”, Maliye Dergisi, 163, 335-353.
  • Güloğlu, B. & B.R. Tekin (2012), “A Panel Causality of the Relationship among Research and Development, Innovation and Economic Growth in High Income OECD Countries”, Euroasian Economic Review, 2(1), 32-47.
  • Güloğlu, B. & S. İspir (2009), Yeni Gelişmeler Işığında Türkiye’de Satın Alma Gücü Paritesi Ön Savının Panel Birim Kök Sınaması, Pamukkale Üniversitesi İ.İ.B.F. İktisat Bölümü Yayınları.
  • Güloğlu, B. & M. İvrendi (2010), “Output Fluctuations: Transitory or Permanent? The Case of Latin America”, Applied Economics Letters, 17, 381-386.
  • Hadri, K. & E. Kurozumi (2012), “A Simple Panel Stationarity Test in the Presence of Serial Correlation and a Common Factor”, Economics Letter, 115, 31-34.
  • Hu, A.G. (2015), “Innovation and Economic Growth in East Asia: An Overview”, Asian Economic Policy Review, 10, 19-37.
  • Hurlin, C. & E. Dumitrescu (2012), “Testing for Granger Non-Causality in Heterogeneous Panels”, <Economic Modelling, https://ideas.repec.org/p/hal/wpaper/halshs-00224434.html>, 25.09.2015.
  • Inekwe, J.N. (2015), “The Contrubution of R&D Expenditures to Economic Growth in Developing Economies”, Social Indicators Research, 124, 727-745.
  • Kacprzyk, A. & W. Doryn (2014), “Innovation and Economic Growth in European Union Panel Data Analysis”, Lodz Economics Working Papers, 3, 1-27.
  • Lucas, R.E. (1988), “On Mechanism of Economic Development”, Journal of Monetary Economics, 22(1), 3-42.
  • Jones, C.I. (1995), “R&D-Based Models of Economic Growth”, Journal of Political Economy, 103(4), 759-84.
  • Özcan, B. & A. Arı (2014), “Araştırma-Geliştirme Harcamaları ve Ekonomik Büyüme İlişkisi: Panel Veri Analizi”, Maliye Dergisi, 166, 39-55.
  • Pesaran, H.M. (2007), “A Simple Panel UnitRoot Test in the Presence of Cross Section Dependence”, Journal of Applied Econometrics, 22(2), 265-312.
  • Pesaran, H.M. & T. Yamagata (2008), “Testing Slope Homogeneity in Large Panels”, Journal of Econometrics, 142, 50-93.
  • Ramsey, F.P. (1928), “The Mathematical Theory of Saving”, The Economic Journal, 38(152), 543- 559.
  • Romer, P.M. (1986), “Increasing Returns and Long-Run Growth”, Journal of Political Economy, 94(5), 1002-1037.
  • Romer, P.M. (1990), “Endogenous Technological Change”, Journal of Political Economy, 98(5), 71- 102.
  • Samimi, A.J. & S.M. Alerasoul (2009), “R&D and Economic Growth: New Evidence from Some Developing Countries”, Australian Journal of Basic and Applied Sciences, 3 (4), 3464- 3469.
  • Santos, F.J. & M.C. Lopes (2014), “Does R&D Matter for Economic Growth or Vice-Verca? An Application Portugal and Other European Countries”, Archives of Business Research, 2(3), 1-17.
  • Schumpeter, J.A. (1911), The Theory of Economic Development, Jürgen Backhaus (ed.), Joseph Alois Schumpeter, Boston: Kluwer.
  • Solow, R.M. (1956), “A Contribution to the Theory of Economic Growth”, Quarterly Journal of Economics, 70, 65-79.
  • Smith, K. (1994), “New Directions in Research and Technology Policy: Identifying Key Issues”, STEPS Country Report.
  • Swan, T.W. (1956), “Economic Growth and Capital Acumulation”, Economic Record, 32(2), 334- 361.
  • Sylwester, K. (2001), “R&D and Economic Growth”, Knowledge, Technology & Policy, 13(4), 71- 84.
  • Taylor, J. (1989), “The Evolution of Ideas in Macroeconomics”, The Economic Record, 65, 185-189.
  • Toda, H.Y. & T. Yamamoto (1995), “Statistical Inference in Vector Autoregressions with Possibly Integrated Processes”, Journal of Econometrics, 66, 225-250.
  • Westerlund, J. (2007), “Testing for Error Correction in Panel Data”, Oxford Bulletin of Economics and Statistics, 69(6), 709-748.
  • Yu-ming, W. & Z. Li & L. Jian-xia (2007), “Co-integration and Causality between R&D Expenditure and Economic Growth in China: 1953-2004”, International Conference on Public Administration, <http://web.cenet.org.cn/upfile/113225.pdf>, 21.01.2017.

Gelişmiş ve Gelişmekte Olan Ülkelerde Ar&Ge Harcamaları ve Ekonomik Büyüme Arasındaki İlişki: Panel Veri Analizi

Year 2017, , 149 - 166, 31.01.2017
https://doi.org/10.17233/sosyoekonomi.288873

Abstract

Çalışmanın amacı ekonomik büyüme ve Ar-Ge harcamaları arasındaki nedensellik ilişkisini 26 farklı gelişmiş ve gelişmekte olan ülke için analiz etmektir. Bu çerçevede Romer’in (1990), teknolojide meydana gelen değişmelerin uzun dönemde ekonomik büyümenin verimliliğini artırdığını ifade eden içsel büyüme modelinden yola çıkılmıştır. 1996-2014 dönemi Eurostat’dan elde edilen yıllık veriler ile dinamik panel veri analizi bağlamında incelenmiştir. Modelde kullanılan değişkenler; kişi başına düşen reel GSYİH (GDPRC) ve teknolojik değişimi temsilen Ar-Ge harcamalarının GSYİH’dan aldığı pay şeklinde ifade edilmektedir. Ampirik kısımda ilk olarak Pesaran ve Yamagata (2008) tarafından geliştirilen Delta testi ile heterojenliğe bakılmış ve değişkenler için yatay kesit bağımlılığı incelenmiştir. Heterojenlik ve yatay kesit bağımlılığını dikkate alan CADF ile HadriKurozumi birim kök testleri uygulanmıştır. Değişkenler arasındaki eş-bütünleşik ilişkinin varlığı Westerlund Hata Düzeltme Mekanizması (ECM) testi ile bulunduktan sonra Dumetriscu-Hurlin (2012) ile Emirmahmutoğlu-Köse (2011) panel nedensellik testleri yapılmıştır. Elde edilen bulgular uzun dönemde Ar&Ge harcamalarından ekonomik büyümeye doğru tek yönlü bir nedensellik ilişkisini ifade etmektedir

References

  • Aghio, P. & P. Howitt (1992), “A Model of Growth through Creative Destruction”, Econometrica, 60(2), 323-331.
  • Akçalı, B.Y. & E. Şişmaoğlu (2015), “Innovation and the Effect of Research and Development Expenditure on Growth in Some Developing and Developed Countries”, Social and Behavioral Sciences, 195, 768-775.
  • Altın, O. & A.A. Kaya (2009), “Türkiye’deAr-Ge Harcamaları ve Ekonomik Büyüme Arasındaki Nedensellik İlişkisininAnalizi”, Ege Akademik Bakış, 9(1), 251-259.
  • Barcenilla‐Visús, S. & J.M. Gómez‐Sancho & C. López‐Pueyo & M.J. Mancebón & J. Sanaú (2013), “Technical Change, Efficiency Change and Institutions: Empirical Evidence for a Sample of OECD Countries”, Economic Record, 89(285), 207-227.
  • Bozkurt, M. (2015), “R&D Expenditures and Economic Growth Relationship in Turkey”, International Journal of Economics and Financial Issues, 5(1), 188-198.
  • Breusch, T.S. & A.R. Pagan (1980), “The Lagrange Multiplier Test and Its Application to Model Specifications in Econometrics”, Review of Economic Studies, 47, 239-253.
  • Chang, Y. (2004), “Bootstrap Unit Root Tests in Panels with Cross-sectional Dependency”, Journal of Econometrics, 120, 263-293.
  • Emirmahmutoğlu, F. & N. Köse (2011), “Testing for Granger Causality in Heterogeneous Mixed Panels”, Economic Modelling, 28, 870-876.
  • Genç, A.C. & Y. Atasoy (2010), “The Relationship between R&D Expenditures and Economic Growth: Panel Data Analysis”, The Journal of Knowledge Economy and Knowledge Management, 5, 27-34.
  • Goel, R.K. & E.P. James & R. Rati (2008), “R&D Expenditures and U.S. Economic Growth: A Disaggregated Approach”, Journal of Policy Modeling, 30(2), 237-250.
  • Göçer, İ. (2013), “Ar-Ge Harcamalarının Yüksek Teknolojili Ürün İhracatı, Dış Ticaret Dengesi ve Ekonomik Büyüme Üzerine Etkileri”, Maliye Dergisi, 165, 215-240
  • Grossman, G.M. & E. Helpman (1991a), Innovation and Growth in the Global Economy, Cambridge Mass: MIT Press.
  • Grossman, G.M. & E. Helpman (1991b), “Quality Ladders in the Theory of Growth”, The Review of Economic Studies, 58(1), 43-61.
  • Grossman, G.M. & E. Helpman (1991c), “Quality Ladders and Product Cycles”, The Quarterly Journal of Economics, 106(2), 557-586.
  • Guellec, D. & B. Pottelsberghe (2001), “R&D and Productivity Growth: Panel Data Analysis of 16 OECD Countries”, OECD Economic Studies, 33(2), 103-126.
  • Gülmez, A. & F. Yardımcıoğlu (2012), “OECD Ülkelerinde Ar-Ge Harcamaları ve Ekonomik Büyüme İlişkisi: Panel Eşbütünleşme ve Panel Nedensellik Analizi 1990-2010)”, Maliye Dergisi, 163, 335-353.
  • Güloğlu, B. & B.R. Tekin (2012), “A Panel Causality of the Relationship among Research and Development, Innovation and Economic Growth in High Income OECD Countries”, Euroasian Economic Review, 2(1), 32-47.
  • Güloğlu, B. & S. İspir (2009), Yeni Gelişmeler Işığında Türkiye’de Satın Alma Gücü Paritesi Ön Savının Panel Birim Kök Sınaması, Pamukkale Üniversitesi İ.İ.B.F. İktisat Bölümü Yayınları.
  • Güloğlu, B. & M. İvrendi (2010), “Output Fluctuations: Transitory or Permanent? The Case of Latin America”, Applied Economics Letters, 17, 381-386.
  • Hadri, K. & E. Kurozumi (2012), “A Simple Panel Stationarity Test in the Presence of Serial Correlation and a Common Factor”, Economics Letter, 115, 31-34.
  • Hu, A.G. (2015), “Innovation and Economic Growth in East Asia: An Overview”, Asian Economic Policy Review, 10, 19-37.
  • Hurlin, C. & E. Dumitrescu (2012), “Testing for Granger Non-Causality in Heterogeneous Panels”, <Economic Modelling, https://ideas.repec.org/p/hal/wpaper/halshs-00224434.html>, 25.09.2015.
  • Inekwe, J.N. (2015), “The Contrubution of R&D Expenditures to Economic Growth in Developing Economies”, Social Indicators Research, 124, 727-745.
  • Kacprzyk, A. & W. Doryn (2014), “Innovation and Economic Growth in European Union Panel Data Analysis”, Lodz Economics Working Papers, 3, 1-27.
  • Lucas, R.E. (1988), “On Mechanism of Economic Development”, Journal of Monetary Economics, 22(1), 3-42.
  • Jones, C.I. (1995), “R&D-Based Models of Economic Growth”, Journal of Political Economy, 103(4), 759-84.
  • Özcan, B. & A. Arı (2014), “Araştırma-Geliştirme Harcamaları ve Ekonomik Büyüme İlişkisi: Panel Veri Analizi”, Maliye Dergisi, 166, 39-55.
  • Pesaran, H.M. (2007), “A Simple Panel UnitRoot Test in the Presence of Cross Section Dependence”, Journal of Applied Econometrics, 22(2), 265-312.
  • Pesaran, H.M. & T. Yamagata (2008), “Testing Slope Homogeneity in Large Panels”, Journal of Econometrics, 142, 50-93.
  • Ramsey, F.P. (1928), “The Mathematical Theory of Saving”, The Economic Journal, 38(152), 543- 559.
  • Romer, P.M. (1986), “Increasing Returns and Long-Run Growth”, Journal of Political Economy, 94(5), 1002-1037.
  • Romer, P.M. (1990), “Endogenous Technological Change”, Journal of Political Economy, 98(5), 71- 102.
  • Samimi, A.J. & S.M. Alerasoul (2009), “R&D and Economic Growth: New Evidence from Some Developing Countries”, Australian Journal of Basic and Applied Sciences, 3 (4), 3464- 3469.
  • Santos, F.J. & M.C. Lopes (2014), “Does R&D Matter for Economic Growth or Vice-Verca? An Application Portugal and Other European Countries”, Archives of Business Research, 2(3), 1-17.
  • Schumpeter, J.A. (1911), The Theory of Economic Development, Jürgen Backhaus (ed.), Joseph Alois Schumpeter, Boston: Kluwer.
  • Solow, R.M. (1956), “A Contribution to the Theory of Economic Growth”, Quarterly Journal of Economics, 70, 65-79.
  • Smith, K. (1994), “New Directions in Research and Technology Policy: Identifying Key Issues”, STEPS Country Report.
  • Swan, T.W. (1956), “Economic Growth and Capital Acumulation”, Economic Record, 32(2), 334- 361.
  • Sylwester, K. (2001), “R&D and Economic Growth”, Knowledge, Technology & Policy, 13(4), 71- 84.
  • Taylor, J. (1989), “The Evolution of Ideas in Macroeconomics”, The Economic Record, 65, 185-189.
  • Toda, H.Y. & T. Yamamoto (1995), “Statistical Inference in Vector Autoregressions with Possibly Integrated Processes”, Journal of Econometrics, 66, 225-250.
  • Westerlund, J. (2007), “Testing for Error Correction in Panel Data”, Oxford Bulletin of Economics and Statistics, 69(6), 709-748.
  • Yu-ming, W. & Z. Li & L. Jian-xia (2007), “Co-integration and Causality between R&D Expenditure and Economic Growth in China: 1953-2004”, International Conference on Public Administration, <http://web.cenet.org.cn/upfile/113225.pdf>, 21.01.2017.
There are 43 citations in total.

Details

Journal Section Articles
Authors

Yağmur Sağlam This is me

Hüseyin Avni Egeli

Pınar Egeli This is me

Publication Date January 31, 2017
Submission Date January 30, 2017
Published in Issue Year 2017

Cite

APA Sağlam, Y., Egeli, H. A., & Egeli, P. (2017). The Relationship between R&D Expenditures and Economic Growth for Some Developed and Developing Countries: A Panel Data Analysis. Sosyoekonomi, 25(31), 149-166. https://doi.org/10.17233/sosyoekonomi.288873
AMA Sağlam Y, Egeli HA, Egeli P. The Relationship between R&D Expenditures and Economic Growth for Some Developed and Developing Countries: A Panel Data Analysis. Sosyoekonomi. January 2017;25(31):149-166. doi:10.17233/sosyoekonomi.288873
Chicago Sağlam, Yağmur, Hüseyin Avni Egeli, and Pınar Egeli. “The Relationship Between R&D Expenditures and Economic Growth for Some Developed and Developing Countries: A Panel Data Analysis”. Sosyoekonomi 25, no. 31 (January 2017): 149-66. https://doi.org/10.17233/sosyoekonomi.288873.
EndNote Sağlam Y, Egeli HA, Egeli P (January 1, 2017) The Relationship between R&D Expenditures and Economic Growth for Some Developed and Developing Countries: A Panel Data Analysis. Sosyoekonomi 25 31 149–166.
IEEE Y. Sağlam, H. A. Egeli, and P. Egeli, “The Relationship between R&D Expenditures and Economic Growth for Some Developed and Developing Countries: A Panel Data Analysis”, Sosyoekonomi, vol. 25, no. 31, pp. 149–166, 2017, doi: 10.17233/sosyoekonomi.288873.
ISNAD Sağlam, Yağmur et al. “The Relationship Between R&D Expenditures and Economic Growth for Some Developed and Developing Countries: A Panel Data Analysis”. Sosyoekonomi 25/31 (January 2017), 149-166. https://doi.org/10.17233/sosyoekonomi.288873.
JAMA Sağlam Y, Egeli HA, Egeli P. The Relationship between R&D Expenditures and Economic Growth for Some Developed and Developing Countries: A Panel Data Analysis. Sosyoekonomi. 2017;25:149–166.
MLA Sağlam, Yağmur et al. “The Relationship Between R&D Expenditures and Economic Growth for Some Developed and Developing Countries: A Panel Data Analysis”. Sosyoekonomi, vol. 25, no. 31, 2017, pp. 149-66, doi:10.17233/sosyoekonomi.288873.
Vancouver Sağlam Y, Egeli HA, Egeli P. The Relationship between R&D Expenditures and Economic Growth for Some Developed and Developing Countries: A Panel Data Analysis. Sosyoekonomi. 2017;25(31):149-66.

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