Analysing the Impact of Financial Development on Innovation Activity in Türkiye: Evidence from ARDL Approach

Öz

The aim of this study is to analyse the effect of financial development on innovation activity with annual data for the period 1984-2021 in Türkiye. For this purpose, the total number of patents representing the innovation activity and the volume of domestic credit extended by banks to the private sector (% of GDP) representing financial development are used in the study by following the relevant literature. Education expenditures, foreign trade volume and foreign direct capital investments, which are thought to affect innovation activity, are also used as control variables. The stationarity of the variables in the study was determined by Augmented Dickey and Fuller (1979, 1981) and Lee and Strazicich (2003) unit root tests. The long-run and short-run relationships of the regression model of the research are handled by ARDL bounds testing approach. A long-run relationship was found in the model established in the research. The findings show that a 1% increase in financial development increases innovation activity by approximately 0.75%. In the long-run, improvements in financial development are positively reflected on innovation activity, while in the short-run they are negatively reflected. Additionally, in the long run, increases in education expenditures and trade volume positively impact innovation activities, while the effect of foreign direct investment is statistically insignificant.

Anahtar Kelimeler

• Financial Development
• Innovation Activity
• ARDL Bound Cointegration Test

Türkiye’de Finansal Gelişmenin İnovasyon Faaliyetine Etkisinin İncelenmesi: ARDL Yaklaşımından Kanıtlar

Öz

Bu araştırmanın amacı, Türkiye’de 1984-2021 dönemi yıllık veriler ile finansal gelişmenin inovasyon faaliyetine etkisinin incelenmesidir. Bu amaçla araştırmada, ilgili literatür takip edilerek inovasyon faaliyetini temsilen toplam patent sayısı, bankalar tarafından özel sektöre verilen yurt içi kredi hacmi (GSYH'nin %'si) ise finansal gelişmeyi temsilen kullanılmıştır. İnovasyon faaliyetini etkilediği düşünülen eğitim harcamaları, dış ticaret hacmi ve doğrudan yabancı sermaye yatırımları da kontrol değişkenler olarak kullanılmıştır. Araştırmada değişkenlerin durağanlık dereceleri Augmented Dickey ve Fuller (1979, 1981) ile Lee ve Strazicich (2003) birim kök testleri ile belirlenmiştir. Araştırmanın regresyon modelinin uzun ve kısa dönemli ilişkileri ARDL sınır test yaklaşımıyla ele alınmıştır. Araştırmada kurulan modelde uzun dönemli bir ilişki tespit edilmiştir. Bulgulara göre finansal gelişmedeki %1’lik bir artış, inovasyon faaliyetini yaklaşık %0.75 artırmaktadır. Uzun dönemde finansal gelişmede yaşanan iyileşmeler inovasyon faaliyetine pozitif; kısa dönemde ise negatif yansımaktadır. Ayrıca, uzun dönemde eğitim harcamaları ve dış ticaret hacmindeki artışlar, inovasyon faaliyetini pozitif etkilerken; doğrudan yabancı sermaye yatırımlarının etkisi ise istatistiksel açıdan anlamsızdır.

Anahtar Kelimeler

• Finansal Gelişme
• İnovasyon Faaliyeti
• ARDL Sınır Eşbütünleşme Testi

Kaynakça

1. Aayale, J. (2016). Financial development and technological innovation as a channel for economic growth in Morocco. Int J Econ Commer Manag, 4(12), 647-658.
2. Akıncı, G. Y., Akıncı, M., & Yılmaz, Ö. (2014). Finansal kalkınma sürecinin Ar-Ge harcamaları üzerindeki etkisi: Schumpeter haklı mıydı?. Maliye Dergisi, 166, 56-74.
3. Aristizabal‐Ramirez, M., Botero‐Franco, M. C., & Canavire‐Bacarreza, G. (2017). Does financial development promote innovation in developing economies? An empirical analysis. Review of Development Economics, 21(3), 475-496.
4. Audretsch, B. D., & Belitski, M. (2023). The limits to open innovation and its impact on innovation performance. Technovation, 119, 102519.
5. Bal, H., İşcan, E., Serin, D., & Kara, D. (2017). Finansal büyüme ve inovasyon ilişkisi: OECD. International Conference on Eurasian Economies, İstanbul, Türkiye.
6. Baloch, M. A., Ozturk, I., Bekun, F. V., & Khan, D. (2021). Modeling the dynamic linkage between financial development, energy innovation, and environmental quality: Does globalization matter?. Business Strategy and the Environment, 30(1), 176-184.
7. Cao, J., Law, S. H., Samad, A. R. B. A., Mohamad, W. N. B. W., Wang, J., & Yang, X. (2022). Effect of financial development and technological innovation on green growth analysis based on spatial Durbin model. Journal of Cleaner Production, 365, 132865.
8. Çil Yavuz, N. (2004). Durağanlığın belirlenmesinde KPSS ve ADF testleri: İMKB Ulusal-100 endeksi ile bir uygulama. İstanbul Üniversitesi İktisat Fakültesi Mecmuası, 54(1), 239- 247.

9. Deligia, E. (2006). Innovation and finance: The theoretical links. Economia. Societa', e Istituzioni, 18(1), 79-102.
10. Demirci, N. S. (2017). Finansal gelişmişliğin özel sektör Ar-Ge harcamalarına etkisi: Türkiye için eşbütünleşme, nedensellik, etki-tepki analizleri ve varyans ayrıştırması (1990-2014). Muhasebe ve Finansman Dergisi, (74), 157-182.
11. Dickey, D. A., & Fuller, W.A. (1979). Distribution of the estimators for autoregressive time series with a unit root. Journal of the American Statistical Association, 74(366), 427-431.
12. Dickey, D. A., & Fuller, W.A. (1981). Likelihood ratio statistics for autoregressive time series with a unit root. Econometrica, 49(4), 1057-1072.
13. Gan, Q. (2023). Financial system and technology innovation in an emerging economy: Can innovation efficiency be increased?. Kybernetes, 52(12), 6049-6062.
14. Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics. New York: McGraw-Hill/Irwin.
15. Hanley, A., Liu, W. H., & Vaona, A. (2011). Financial development and innovation in China: Evidence from the provincial data. Kiel Working Paper, 1673.
16. Helhel, Y. (2018). Finansal gelişme ve Ar-Ge harcamaları ilişkisi: Bir panel veri analizi. Ekonomi Bilimleri Dergisi, 10(1), 70-80.
17. Hsu, P. H., Tian, X., & Xu, Y. (2014). Financial development and innovation: Cross-country evidence. Journal of Financial Economics, 112(1), 116-135.
18. Ilyina, A., & Samaniego, R. (2011). Technology and financial development. Journal of Money, Credit and Banking, 43(5), 899-921.
19. Kapidani, M., & Luci, E. (2019). The effects on innovation from financial sector development: Evidence from developing countries. Journal of Competitiveness, 11(2), 84.
20. Koçak, E. (2018). Finansal gelişme ve yenilik (inovasyon): Türkiye üzerine ampirik bir araştırma. Kapadokya Akademik Bakış, 2(1), 12-28.
21. Law, S. H., Lee, W. C., & Singh, N. (2018). Revisiting the finance-innovation nexus: Evidence from a non-linear approach. Journal of Innovation & Knowledge, 3(3), 143-153.
22. Lee, J., & Strazicich, M. C. (2003). Minimum lagrange multiplier unit root test with two structural breaks. The Review of Economics and Statistics, 85(4), 1082-1089.
23. Levine, R. (1997). Financial development and economic growth: Views and agenda. Journal of Economic Literature, 35(2), 688-726.
24. Levine, R. (2004). Finance and growth: Theory and evidence. National Bureau of Economic Research Nber Working Paper Series, 10766.
25. Li, J. (2024). Impact of financial development on innovation efficiency of high-tech industrial development zones in Chinese cities. Technology in Society, 76, 102467.
26. Loukil, K. (2020). The impact of financial development on innovation activities in emerging and developing countries. Business and Economic Research, 10(1), 112-119.
27. Meierrieks, D. (2014). Financial development and innovation: Is there evidence of a Schumpeterian finance-innovation nexus?, Annals of Economics & Finance, 15(2), 343-363.
28. Mtar, K., & Belazreg, W. (2021). Causal nexus between innovation, financial development, and economic growth: The case of OECD countries. Journal of the Knowledge Economy, 12(1), 310-341.
29. Narayan, P. K. (2005). The saving and investment nexus for China: Evidence from cointegration tests. Applied Economics, 37(17), 1979-1990.
30. Narayan, P., & Smyth, R. (2005). Trade liberalization and economic growth in Fiji. An empirical assessment using the ARDL approach. Journal of the Asia Pacific Economy, 10(1), 96-115.
31. Özaytürk, G. (2022). Finansal gelişme Ar&Ge yatırımlarının belirleyicisi olabilir mi? Gelişmekte olan ülkeler üzerine ampirik bir uygulama. Çukurova Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 26(1), 35-46.
32. Pesaran, M. H., & Shin, Y. (1995). An autoregressive distributed lag modelling approach to cointegration analysis. Cambridge Working Papers in Economics, 9514.
33. Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289-326.
34. Pradhan, R. P., Arvin, M. B., & Bahmani, S. (2018). Are innovation and financial development causative factors in economic growth? Evidence from a panel Granger causality test. Technological Forecasting and Social Change, 132, 130-142.
35. Pradhan, R. P., Arvin, M. B., Hall, J. H., & Nair, M. (2016). Innovation, financial development and economic growth in Eurozone countries. Applied Economics Letters, 23(16), 1141-1144.
36. Sanso‐Navarro, M., & Vera‐Cabello, M. (2016). Regional growth, innovation, and latent nonlinear effects. Journal of Regional Science, 56(5), 814-847.
37. Tadesse, S. (2005). Financial development and technology. William Davidson Institute Working Paper, 749.
38. Tee, L. T., Low, S. W., Kew, S. R., & Ghazali, N. A. (2014). Financial development and innovation activity: Evidence from selected East Asian countries. Prague Economic Papers, 23(2), 162-180.
39. World Bank. (2024). World Bank Open Data. https://data.worldbank.org adresinden 20.04.2024 tarihinde alınmıştır.
40. Zhao, W. (2016). Financial development and regional innovation output growth: Based on empirical analysis of provincial panel data in China. Modern Economy, 7(01), 10-19.
41. Zhu, X., Asimakopoulos, S., & Kim, J. (2020). Financial development and innovation-led growth: Is too much finance better?. Journal of International Money and Finance, 100, 102083.