The Relationship between Research and Development (R&D) Expenditures: Panel Cointegration Analysis Under Cross Sectional Dependency on OECD Countries

Year 2015, Volume: 70 Issue: 2, 345 - 376, 21.07.2015

Halil Altıntaş , Mehmet Mercan

https://doi.org/10.1501/SBFder_0000002355

Cited By: 45

Abstract

In this study, the effects of R&D expenditures on economic growth in the sample of 21 OECD countries were analyzed with the help of production function by using the data between 1996 and 2011 period. Besides the R&D expenditures, fixed capital formation and labour force growth variables were also utilized in the study. In the analysis, new generation panel data methods considering the cross sectional dependency, which assumes that a shock happening in one of the analyzed countries would affect the other one, was used. As a result of the analysis, it was determined that the increase in R&D expenditures strongly affected the economic growth and this effect was higher than the fixed capital formation and labour force growth and 1 unit of increase in R&D expenditures increased the economic growth 3.4 unit. It was found out that fixed capital formation and labour force growth variables also affected the economic growth positively and 1 unit of increase in these variables increased the economic growth 0.21 and 0.20 unit, respectively

Keywords

Research and Development, Economic Growth, Cross Sectional Dependency, Panel Cointegration, OECD

AR-GE Harcamaları ve Ekonomik Büyüme İlişkisi: OECD Ülkeleri Üzerine Yatay Kesit Bağımlılığı Altında Panel Eşbütünleşme Analizi

Abstract

Bu çalışmada, Ar-Ge harcamalarının ekonomik büyüme üzerindeki etkileri üretim fonksiyonu yardımıyla 21 OECD ülkesi örneğinde 1996-2011 dönemi verileri kullanılarak incelenmiştir. Çalışmada Ar-Ge harcamalarının yanı sıra, sabit sermaye oluşumu ve işgücü artış oranı değişkenleri de kullanılmıştır. Analizde yatay kesit bağımlılığını, yani incelenen ülkelerden herhangi birisinde meydana gelen bir şokun diğerlerini de etkileyeceği varsayımını göz önünde bulunduran yeni nesil panel veri yöntemleri kullanılmıştır. Analiz sonucunda; Ar-Ge harcamalarındaki artışın ekonomik büyümeyi güçlü bir şekilde etkilediği, bu etkinin sabit sermaye oluşumu ve işgücü artış oranından daha yüksek olduğu ve Ar-Ge harcamalarındaki bir birimlik artışın ekonomik büyümeyi 3.4 birim arttırdığı belirlenmiştir. Sabit sermaye oluşumu ve işgücü artış oranı değişkenlerinin de ekonomik büyüme olumlu etkilediği ve bu değişkenlerdeki 1 birimlik artışın büyümeyi sırasıyla 0.21 ve 0.20 birim arttırdığı bulgusuna ulaşılmıştır.

Keywords

Ar-Ge, Ekonomik Büyüme, Yatay Kesit Bağımlılığı, Panel Eşbütünleşme, OECD

References

• Acemoğlu, Daron (2002), Technical Change, Inequality, and the Labor Market, NBER Working Paper No 7800, (Cambridge).
• Aghion, Philippe ve Peter Howit (2006), “Appropriate Growth Policy: a Unifying Framework”, Journal of the European Economic Association, 4 (2/3): 269-314.
• Aghion, Philippe ve Peter Howit (1998), Endogenous Growth Theory, (Cambridge, Massachusetts: The MIT Press).
• Aghion, Philippe ve Peter Howit (1992), “A Model of Growth Through Creative Destruction”, Econometrica, 60: 323–351.
• Akbey, Ferhat (2014) “Ar-Ge, İnovasyon ve Kalkınma İlişkisine Yönelik Bir Literatür Taraması: Kuramsal Özet”, Maliye Dergisi, 166: 1-16.
• Bai, Jushan ve Serena Ng (2004), “A Panic Attack on Unit Roots and Cointegration” Econometrica, 72(4): 1127-1178.
• Bai, Jushan ve Pierre Perron (1998), “Estimating and Testing Linear Models with Multiple Structural Changes” Econometrica, 66 (1): 47-78.
• Basher, Syed A. ve Joakim Westerlund (2009), “Panel Cointegration and the Monetary Exchange Rate Model” Economic Modelling, 26: 506-513.
• Bassanini, Andrea ve Stefano Scarpetta (2002), “Does Human Capital Matter for Growth in OECD Countries? A Pooled Mean-Group Approach”, Economics Letters, 74: 399–405.
• Bassanini, Andrea, Stefano Scarpetta ve P. Hemmings (2001), Economic Growth: the Role of Policies and Institutions: Panel Data Evidence from OECD Countries, Economics, Department Working Papers No 283, (Paris: OECD).
• Batelle (2013), 2014 Global R&D Funding Forecast, December.
• Bayarçelik, Ebru Beyza ve Fulya Taşar (2012) “Research and Development: Source of Economic Growth”, Procedia - Social and Behavioral Sciences, 58: 744-753
• Bayraktar-Sağlam, Bahar ve İ.Hakan Yetkiner (2014), “A Romerian Contribution to the Empirics of Economic Growth”, Journal of Policy Modeling, 36 (2): 257–272.
• Beyaert, Arielle ve Maximo Camacho (2008), “TAR Panel Unit Root Tests and Real Convergence: An Application to the EU Enlargement Process”, Review of Development Economics, 12 (3): 668-681.
• Branstetter, Lee G. (2001). “Are Knowledge Spillovers International or Intranational in Scope? Microeconometric Evidence from the US and Japan”, Journal of International Economics, 53 (1): 53−79.
• Bravo, Ortega Claudia ve Garcia Marin Alvaro (2011), “R&D and Productivity : A Two Way Avenue?”, World Development, 39 (7): 1090-1107.
• Breitung, Jörg (2005), “A Parametric Approach to the Estimation of Cointegrating Vectors in Panel Data”, Econometric Reviews, 24 (2): 151‐173.
• Breuer, Boucher, Robert McNown ve Myles Wallace (2002) “Series-Specific Unit Root Test with Panel Data” Oxford Bulletin of Economics and Statistics, 64 (5): 527-546.
• Breusch, Trevor Stanley ve Adrian Rodney Pagan (1980) “The Lagrange Multiplier Test and Its Applications to Model SpeciŞcation Tests in Econometrics”, Review of Economic Studies, 47 (1): 239-53.
• Carrion-Silvestre, Lluis J., Tomas Del Barrio-Castro, T. D. ve Enrique Lopez-Bazo (2005), “Breaking the Panels: An Application to the GDP Per Capita”, Econometrics Journal, 8: 159-175.
• Charemza, Wojciech ve D. F. Deadman (1997), New Directions in Econometric Practice: General to Specific Modelling, Cointegration and Vector Autoregression, (Chelthenham, UK: Edward Elgar Publishing).
• Choi, In (2001), “Unit Roots Tests for Panel Data”, Journal of International Money and Finance, 20 (2): 229-272.
• Coccia, Mario (2012), “Political Economy of R&D to Support the Modern Competitiveness of Nations and Determinants of Economic Optimization and Inertia”, Technovation, 32 (6): 370-379.
• Coccia, Mario (2011), “The Interaction Between Public and Private R&D Expenditure And National Productivity”, Prometheus, 29 (2): 121-130.
• Coe, David T., Elhanan Helpman ve Alexander Hoffmaister (1995) North-South R&D Spillovers, NBER Working Paper, No. 5048, (Cambridge, Massachusetts: National Bureau of Economic Research).
• Czarnitzki Dirk ve Otto Toivanen (2013), Innovation Policy and Economic Growth, European Commission Economic Papers, 482, April.
• Eaton, Jonathan ve Samuel Kortum (1996), “Trade in idea: Patenting and Productivity in the OECD”, Journal of International Economics, 40 (3-4): 251-278.
• Eberhardt, Markus ve Stephen Bond (2009), Cross-section Dependence in Nonstationary Panel Models: A Novel Estimator, MPRA (Munich Personal RePEc Archive), Paper No: 17692. http://mpra.ub.uni-muenchen.de/17692/ (15.05.2014)
• Falk, Martin (2007), R&D “Spending in The High-Tech Sector and Economic Growth” Research in Economics, 61 (3): 140–147.
• Frantzen, Dirk (2000), “R&D, Human Capital and International Technology Spillovers: A Cross- country Analysis”, Scandinavian Journal of Economics, 102 (1): 57-75.
• Freire-Serén, M. Jesus (1999), “Aggregate R&D Expenditure and Endogenous Economic Growth”, http://pareto.uab.es/wp/1999/43699.pdf. (16.04.201).
• Freeman, Chris. ve Luc Soete (2003), Yenilik İktisadı, (Ankara, TÜBİTAK Yayını) (Çev. Ergun Türkcan).
• Griliches, Z. (1979), “Issues in Assessing the Contribution of Research and Development to Productivity Gowth”.Bell Journal of Economics, 10, 92–116.
• Global R&D Funding (2013), Global Funding of R&D, R&D Magazine”, 03.04.2014, http://www.rdmag.com/sites/rdmag.com/files/gff-2014-5_7%20875x10_0.pdf, (15.04.2014).
• Goel Rajeev K. ve Tati Ram (1994), “Research and Development Expenditures and Economic Growth: A Cross-Country Study”, Economic Development and Cultural Change, 42 (2): 403-411.
• Göçer, İsmet (2014) “Ar-Ge Harcamalarının Yüksek Teknolojili Ürün İhracatı, Dış Ticaret Dengesi ve Ekonomik Büyüme Üzerindeki Etkileri”, Maliye Dergisi, 164: 215-240.
• Griffith, Rachel, Stephen Redding ve John V. Reenen, (2002), “R &D and Absorptive Capacity: Theory and Empirical Evidence”, Scandinavian Journal of Economics, 105 (1), 99-118,
• Griffith, Rachel, Stephen Redding ve John V. Reenen, (2004), “Mapping the two Faces of R&D: Productivity Growth in a Panel of OECD Industries”, Review of Economics and Statistics, 86 (4), 883-895.
• Griliches, Zivi ve Mairesse, J. (1984), Productivity and R&D at the Firm Level”, In: Griliches, Z. (Ed.), R&D, Patents and Productivity, (Chicago University Press).
• Grossman, Gene M. ve Elhanan Helpman (1991), Innovation and Growth in the Global Economy, (Cambridge: The MIT Press).
• Guellec, Dominique ve Bruno van Potteria Potterie (2001), R&D and Productivity Growth: Panel Data Analysıs of 16 OECD Countries, OECD Economic Studies No. 33.
• Guellec, Dominique ve Bruno van Potteria Potterie (2004), “From R&D to Productivity Growth: Do the Institutional Setting and the Sources of Funds of R&D Matter?” Oxford Bulletin of Economics and Statistics, 66 (3): 353-378.
• Gyekye, A. B., E.K. Oseifuah ve Vukor-Quarshie, G.N.K (2012), “The Impact of Research and Development on Socio-Economic Development: Perspectives from Selected Developing Economies”, Journal of Emerging Trends in Economics and Management Sciences, 3 (6): 915-922.
• Hadri, Kaddour (2000), “Testing for Stationarity in Heterogenous Panels” Econometrics Journal, 3 (2): 148-161.
• Hall, Bronwyn ve Jacques Mairesse, J. (1995). “Exploring The Relationship between R&D and Productivity in French Manufacturing Firms”, Journal Econometrics, 65 (1): 263-293.
• Helpman, E. (2004), The Mystery of Economic Growth, Balknap for Harvard University Press, Cambridge, MA.
• Im, So Kyung, M. Hashem Pesaran ve Yongceol Shin (2003), “Testing for Unit Roots in Heterogenous Panels”, Journal of Econometrics, 115 (1): 53-74.
• Jones, Charles I. (1995), "Time Series Tests of Endogenous Growth Models", Quarterly Journal of Economics, 110 (2): 495-525.
• Keller, Wolfgang (2000), “Do Trade Patterns and Technology Flows Affect Productivity Growth”, World Bank Economic Review, 14: 17-47.
• Khan, Mosahid ve Kul B.Lunitel (2006), Sources of Knowledge and Productivity: How Robust is the Relationship?, STI Working Paper 2006/6, (Paris: OECD).
• Kuo, Chun-Chien ve Chih-Hai Yang (2008), “Knowledge Capital and Spillover on Regional Economic Growth: Evidence From China”, China Economic Review”, 19 (4): 594-604.
• Levin, Andrew, Chien-Fu ve Lin, ve Chia-Shang JameChu (2002), “Unit Root Tests in Panel Data: Asymptotic and Finite Sample Properties”, Journal of Econometrics, 108 (1): 1-24.
• Liu, Jian., Shiying Wu ve James V. Zidek (1997) “On Segmented Multivariate Regressions” Statistica Sinica, 7: 497-525.
• Maddala, G. S. ve Wu, Shaowen (1999), “A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test”, Oxford Bulletin of Economics and Statistics, 61 (1): 631-652.
• Mamuneas, Theofanis P. ve M.Ishaq Nadiri (1996), “Public R&D Policies and Cost Behavior of The US Manufacturing Industries”, Journal of Public Policy, 63 (1), 57-81.
• Nadiri, Ishaq (1993), “Innovations and Technological Spillovers”, NBER Working Paper No. 4423. (Boston: National Bureau of Economic Research).
• OECD (2003), Sources of Economic Growth, OECD, Paris.
• OECD (2011) OECD Factbook 2011-2012: Economic, Environmental and Social Statistics, Expenditure 01/index.html?itemId=/content/chapter/factbook-2011-68-en (12.05.2014).
• 002014,http://www.oecd-ilibrary.org/sites/factbook-2011
• OECD (2013a), Research and Development, Expenditure on R&D, Researchers, Patents, Biotechnology, http://www.oecd.org/std/08_Science_and_technology.pdf (12.05.2014).
• OECD (2013b), Factbook 2013: Economic, Environmental and Social Statistics, http://www.oecd- ilibrary.org/sites/factbook-2013-en/08/01/01/index.html?itemId=/content/chapter/factbook- 2013-60-en (12.05.2014).
• OECD (2014), Main Science and Technology Indicators.
• Pesaran, M. Hashem (2004), General Diagnostic Tests for Cross Section Dependence in Panels, Cambridge Working Papers in Economics, 435.
• Pesaran, M. Hashem (2006), “Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure” Econometrica, 74 (4): 967-1012.
• Pesaran, M. Hashem, Aman Ullah ve Takashi Yamagata (2008), “A Bias-Adjusted LM Test of Error Cross-Section Independence” Econometrics Journal, 11 (1): 105-127.
• Pesaran, M. Hashem ve Yamagata, T. (2008), “Testing Slope Homogeneity in Large Panels”, Journal of Econometrics, 142 (1), 50-93. Rdmag (2013), “Asia Drives Growth in 2013 Global R&D”, http://www.rdmag.com/articles/2012/12/asia-drives-growth-2013-global-r- ?cmpid=related_content (10.03.2014).
• Pritchett, L., (1997), “Divergence, Big Time”, Journal of Economic Perspectives, 11: 3-17.
• Romer, Paul (1990), “Endogenous Technological Change”, Journal of Political Economy, 98 (5): 71- 102.
• Savvides, Andreas ve Marios Zachariadis (2003), “International Technology Diffusion and the Growth of TFP in the Manufacturing Sector of Developing Economies”, Review of Development Economics, 9 (4): 482-501.
• Schumpeter, J.A. (1939), Business Cycles: A Theoretical, Historical and Statistical Analysis of the Capitalist Process, (New York-Toronto-London: McGraw-Hill Book Company).
• Seck, Abdoulaye (2012), “International technology Diffusion and Economic Growth: Explaining the Spillover Benefits to Developing Countries Structural Change and Economic Dynamics”, 23: 437– 451.
• Silaghi, Monica Ioana Pop, Diana Alexa, Christina Jude ve Christian Litan (2014), “Do Business and Public Sector Research and Development Expenditures Contribute to Economic Growth in Central and Eastern European Countries? A Dynamic Panel Estimation”, Economic Modelling, 36: 108-119.
• Taban, Sami (2014), İktisadi Büyüme, Kavram ve Modeller, 3. Baskı, Nobel Yayınevi, Ankara.
• Taylor, Mark P. ve Lucio Sarno (1998), “The Behaviour of Real Exchange Rates during the Post- Bretton Woods Period”, Journal of International Economics, 46 (2): 281-312.
• Ülkü, Hülya (2004), “R&D, Innovation, and Economic Growth: An Empirical Analysis”, IMF Working Paper, WP/04/185.
• Ünsal, Erdal Muzaffer, (2007), İktisadi Büyüme, (İmaj Yayıncılık, Ankara).
• Wakelin Katharine (2001), “Productivity Growth and R&D Expenditure in UK Manufacturing Firms”, Research Policy, 30 (7), 1079-1090.
• Wang, David Han-Min, Tiffany Hui-Kuang Yu ve Hong.-Quan Liu (2013), “Heterogeneous Effect of High-Tech Industrial R&D Spending on Economic Growth”, Journal of Business Research, 66 (10): 1990-1993.
• Wang, Jiann-Chyuan ve Kuen-Hung Tsai (2003), Productivity Growth And R&D Expenditure In Taiwan’s Manufacturing Firms, National Bureau of Economic Research Working Paper No 9724.
• Worldbank (2014), World Development Indicators.
• Zachariadis, Marios (2003), “R&D, Innovation, and Technological Progress: A Test of the Schumpeterian Framework without Scale Effects”, Canadian Journal of Economics, 36 (3): 566-686.