Investigation of the Effect of R&D, Education and Health Expenditures on Economic Growth by Panel Data Analysis Method

Year 2021, , 95 - 108, 31.10.2021

Durmuş Gökkaya , Osman Şenol , Ümit Çıraklı

https://doi.org/10.17233/sosyoekonomi.2021.04.05

Cited By: 2

Abstract

This study aims to reveal the effects of R&D, education, and health expenditures on economic development. For this purpose, the study examines the 2000-2019 data of 45 countries in the middle-upper-income and high-income country groups by panel data analysis method. Errors encountered in panel data basic assumption tests were corrected with Driscoll-Kraay standard errors. As a result, it has been determined that a one-unit increase in education and health expenditures contributes more to economic growth than one unit. In contrast, R&D expenditures have a minor positive effect on economic growth in the short run but more in the long run.

Keywords

R&D, Economic Growth, Education Expenditure, Health Expenditure, Panel Data Analysis

Ar-Ge, Eğitim ve Sağlık Harcamalarının Ekonomik Büyüme Üzerindeki Etkisinin Panel Veri Analizi Yöntemiyle Değerlendirilmesi

Abstract

Bu çalışma Ar-Ge, eğitim ve sağlık harcamalarının ekonomik gelişme üzerinde etkileri ortaya koymayı amaçlamaktadır. Bu amaçla çalışma orta-üst gelir ve yüksek gelirli ülke gruplarında yer alan 45 ülkenin 2000-2019 verilerini panel veri analiz yöntemi ile incelemektedir. Panel veri temel varsayım testleri sonucu karşılaşılan hatalar Driscool-Kraay standart hatalar ile düzeltmiştir. Çalışma sonucunda eğitim ve sağlık harcamalarındaki bir birimlik artışın ekonomik büyümeye bir birimden daha fazla katkı sağladığı, Ar-Ge harcamalarının ise ekonomik büyüme üzerinde kısa vadede pozitif etkisi az iken, uzun vadede daha fazla olduğu belirlenmiştir.

Keywords

Ar-Ge, Ekonomik Büyüme, Eğitim Harcaması, Sağlık Harcaması, Panel Veri Analizi

References

• Aghion, P. & P. Howitt (1996), “Research and development in the growth process”, Journal of Economic Growth, 1(1), 49-73.
• Akcali, B.Y. & E. Sismanoglu (2015), “Innovation and the effect of research and development (R&D) expenditure on growth in some developing and developed countries”, Procedia-Social and Behavioral Sciences, 195, 768-775.
• Bakare, A.A. & S. Olubokun (2011), “Health care expenditure and economic growth in Nigeria: An empirical study”, Journal of Emerging Trends in Economics and Management Sciences, 2(2), 83-87.
• Baltagi, B.H. (2013), Econometric analysis of panel data, Chichester: John Wiley & Sons.
• Barro, R.J. (2001), “Education and economic growth”, in: J.F. Helliwell (ed.), The contribution of human and social capital to sustained economic growth and well-being, OECD, 13-41.
• Bhargava, A. & D.T. Jamison & L.J. Lau & C.J. Murray (2001), “Modeling the effects of health on economic growth”, Journal of health economics, 20(3), 423-440.
• Bozkurt, C. (2015), “R&D expenditures and economic growth relationship in Turkey”, International Journal of Economics and Financial Issues, 5(1), 188.
• Brien, R.M. (2007), “A caution regarding rules of thumb for variance inflation factors”, Quality & Quantity, 41(5), 673-690.
• Chang, K. & Y.H. Ying (2006), “Economic growth, human capital investment, and health expenditure: a study of OECD countries”, Hitotsubashi Journal of Economics, 1-16.
• Chatterji, M. (1998), “Tertiary education and economic growth”, Regional Studies, 32(4), 349-354.
• Elmi, Z.M. & S. Sadeghi (2012), “Health care expenditures and economic growth in developing countries: panel co-integration and causality”, Middle-East Journal of Scientific Research, 12(1), 88-91.
• Falk, M. (2007), “R&D Spending in the High-Tech Sector and Economic Growth”, Research in Economics, 61(3), 140-147.
• Goel, R.K. & J.E. Payne & R. Ram (2008), “R&D expenditures and US economic growth: A disaggregated approach”, Journal of policy modeling, 30(2), 237-250.
• Griffith, R. (2000), “How important is business R&D for economic growth and should the government subsidise it?”, IFS Briefing Note, No. 12, The Institute for Fiscal Studies, London.
• Gujarati, D.N. (2004), Basic econometrics, McGraw Hill: New York.
• Güven, D. & T. Şimşek & A. Güven (2018), “Sağlık Yönetimi Kapsamında Sağlık Harcamalarının Ekonomik Büyüme Üzerine Etkisi: MENA Ülkeleri Üzerine Bir Panel Regresyon Analizi”, Sosyoekonomi, 26(37), 33-55.
• Gyimah-Brempong, K. & O. Paddison & W. Mitiku (2006), “Higher education and economic growth in Africa”, The Journal of Development Studies, 42(3), 509-529.
• Gylfason, T. (2001), “Natural resources, education, and economic development”, European economic review, 45(4-6), 847-859.
• Hanushek, E.A. & L. Woessmann (2010), “Education and economic growth”, Economics of education, 60-67.
• Heshmati, A. (2001), “On the Causality Between GDP and Health Care Expenditure in Augmented Solow Growth Model”, SSE/EFI Working Paper Series in Economics and Finance, No. 423.
• Hongyi, L.I. & L. Huang (2009), “Health, education, and economic growth in China: Empirical findings and implications”, China Economic Review, 20(3), 374-387.
• Kurt, S. (2015), “Government health expenditures and economic growth: a Feder-Ram approach for the case of Turkey”, International Journal of Economics and Financial Issues, 5(2), 441-447.
• Mansfield, E. (1972), “Contribution of R&D to economic growth in the United States”, Science, 175(4021), 477-486.
• Mariana, D.R. (2015), “Education as a determinant of the economic growth: The case of Romania”, Procedia-Social and Behavioral Sciences, 197, 404-412.
• Mayer, D. (2001), “The long-term impact of health on economic growth in Latin America”, World development, 29(6), 1025-1033.
• Mercan, M. & S. Sezer (2014), “The effect of education expenditure on economic growth: The case of Turkey”, Procedia-Social and Behavioral Sciences, 109, 925-930.
• Mishra, P.K. & S.K. Mishra (2015), “The Triangulation Dynamics between Education, Health and Economic Growth in India”, The Journal of Commerce, 7(2), 69.
• Pessoa, A. (2010), “R&D and economic growth: How strong is the link?”, Economics Letters, 107(2), 152-154.
• Piabuo, S.M. & J.C. Tieguhong (2017), “Health expenditure and economic growth-a review of the literature and an analysis between the economic community for central African states (CEMAC) and selected African countries”, Health economics review, 7(1), 1-13.
• Rivera IV, B. & L. Currais (1999), “Economic growth and health: direct impact or reverse causation?”, Applied Economics Letters, 6(11),761-764.
• Romer, P.M. (1989). “Human capital and growth: Theory and evidence”, NBER Working Paper, 3173, National Bureau of Economic Research, Cambridge, Mass.
• 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.
• Şen, H. & A. Kaya & B. Alpaslan (2018), “Education, Health, and Economic Growth Nexus: A Bootstrap Panel Granger Causality Analysis for Developing Countries”, Sosyoekonomi, 26(36), 125-144.
• Stevens, P. & M. Weale (2004), “Education and economic growth”, International handbook on the economics of education, 27, 205-311.
• Stokey, N.L. (1995), “R&D and economic growth”, The Review of economic studies, 62(3), 469-489.
• Sylwester, K. (2001), “R&D and economic growth”, Knowledge, Technology & Policy, 13(4), 71-84.
• Tamang, P. (2011), “The impact of education expenditure on India’s economic growth”, Journal of International Academic Research, 11(3), 14-20.
• Wang, K.M. (2011), “Health care expenditure and economic growth: Quantile panel-type analysis”, Economic Modelling, 28(4), 1536-1549.
• Woo, Y. & E. Kim & J. Lim (2017), “The impact of education and R&D investment on regional economic growth”, Sustainability, 9(5), 676.