The causality relationship between R&D expenditures and Unemployment in Turkey and Azerbaijan

Yıl 2020, Cilt: 1 Sayı: 1, 10 - 15, 22.12.2020

Teslime Yıldırım

Öz

Innovations resulting from R&D activities directly affect the production process positively. The improvement in R&D activities will increase efficiency and productivity, leading to an increase in the total output level. Therefore, developing countries are increasing their expenditures on R&D activities day by day in order to achieve their economic growth targets. However, although it is stated in the literature that increasing R & D activities positively affect growth, there is no consensus on the relationship between R & D expenditures and unemployment. The interaction between R&D and unemployment varies depending on the type of innovation countries experience. In this study, the causality relationship between R&D expenditures and unemployment in developing countries such as Turkey and Azerbaijan is analyzed by Emirmahmutoğlu and Kose (2011) panel causality test. According to the results of the analysis, a statistically significant one-way causality relationship between R&D expenditures and unemployment is determined at the significance level of 5% in Turkey. In Azerbaijan, a statistically significant one-way causality relationship is determined from unemployment to R&D expenditures at the significance level of 5%.

Anahtar Kelimeler

R&D Expenditures, Unemployment, Panel Causality

Kaynakça

• Agovino, M., Aldieri, L., Garofalo, A., & Vinci, C. P. (2018). R&D spillovers and employment: Evidence from European patent data. Empirica, 45(2), 247-260.
• Baş, H., & Canöz, İ. (2020). The role of R&D investments on labor force: The case of selected developed countries. In D., Hasan, Y., Serhat (Eds.), Strategic priorities in competitive environments (pp. 281-299). Springer, Cham.
• Bogliacino, F., & Vivarelli, M. (2010). The job creation effect of R&D expenditures. No 4728, IZA Discussion Papers, Institute of Labor Economics (IZA), https://EconPapers.repec.org/RePEc:iza:izadps:dp4728.
• Bogliacino, F., Piva, M., & Vivarelli, M. (2014). Technology and employment: The job creation effect of business R&D. Rivista Internazionale di Scienze Sociali, 3, 239-264.
• Breusch, T. S., & Pagan, A. R. (1980). The Lagrange multiplier test and its applications to model specification in econometrics. The Review of Economic Studies, 47(1), 239-253.
• Brouwer, E., Kleinknecht, A., & Reijnen, J. O. (1993). Employment growth and innovation at the firm level. Journal of Evolutionary Economics, 3(2), 153-159.
• Coad, A., & Rao, R. (2010). Firm growth and R&D expenditure. Economics of Innovation and New Technology, 19(2), 127–145.
• Çiftçioğlu, S., & Sokhanvar, A. (2020). Can increasing the R&D intensity lower unemployment rate? Case of five selected european countries. Ekonomicky Casopis, 68(2), 188-207.
• Emirmahmutoglu, F., & Kose, N. (2011). Testing for granger causality in heterogeneous mixed panels. Economic Modelling, 28(3), 870-876.
• Gerçeker, M., Özmen, İ., & Mucuk, M. (2019). Ar-ge harcamaları ve işsizlik arasındaki nedenselliğin ampirik analizi: G7 ülkeleri örneği. Marmara University Journal of Economic & Administrative Sciences, 41(2), 413-431.
• Kirchhoff, B. A., Newbert, S. L., Hasan, I., & Armington, C. (2007). The influence of university R & D expenditures on new business formations and employment growth. Entrepreneurship Theory And Practice, 31(4), 543-559.
• Lucas, R. (1988). On the mechanics of development planning. Journal of Monetary Economics, 22(1), 3-42.
• Oberdabernig, D. A. (2016). Employment effects of innovation in developing countries: A summary. (R4D Working Paper 2016/2). Swiss Programme for Research on Global Issues for Develeopment.
• OECD (2012). Main Science and Technology Indicators. OECD Publishing.
• Pesaran, M. H. (2004). General diagnostic tests for cross-sectional dependence in panels (IZA Discussion Paper No. 1240). http://ftp.iza.org/dp1240.pdf
• Pesaran, M. H., & Yamagata, T. (2008). Testing slope homogeneity in large panels. Journal of Econometrics, 142(1), 50-93.
• Pesaran, M. H., Ullah, A., & Yamagata, T. (2008). A bias‐adjusted LM test of error cross‐section independence. The Econometrics Journal, 11(1), 105-127.
• Piva, M., & Vivarelli, M. (2017). Is R&D good for employment? Microeconometric evidence from the EU (IZA DP No. 10581). http://ftp.iza.org/dp10581.pdf
• 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, Part 2), S71-S102.
• Schumpeter, J. (1942). Creative destruction. Capitalism, Socialism and Democracy, 825, 82-85.
• Solow, R. M. (1956). A contribution to the theory of economic growth. The Quarterly Journal of Economics, 70(1), 65-94.
• Şimşek T. & Destebaşı, E. (2020). The relationship between global economic ıntegration, human capital investments and corruption in turkic states. Third Sector Social Economic Review, 55(2), 808-827.
• Şimşek, T., & Yiğit, E. (2019). Logistical performance and economic growth relationship between central and Eastern Europe Countries and Turkey CASE. International Journal of Management Education and Economic Perspectives, 7(2), 169-177.
• Tamayo, M. P., & Huergo, E. (2016). The effect of R&D services offshoring on skilled employment: Firm evidence. The World Economy, 39(9), 1414-1433.