THE RELATIONSHIP BETWEEN R&D EXPENDITURES AND ECONOMIC GROWTH: THE CASE OF TURKEY (1990-2014)

Year 2017, Volume: 17 Issue: 2, 1 - 17, 30.06.2017

Recep Tarı , Mustafa Mert Alabaş

Abstract

The concept of growth has been debated since the emergence of economics. Along with globalization, changes in the determinants of economic growth have occured. Growth theories have begun to be popular after the 1980s, highlighted the growing role of technology and research and development. Today, research and development is one of the most important variables that show the level of technology and level of development of a country. To spend much more on expence of R&D leads to promote technological improvements, besides productivity and growth increase. In this study, the relationship between R&D expenditures and economic growth is analyzed with ARDL model for Turkish economy in the period 1990-2014. This is the aim of the study consist of four parts. The first chapter ‘’entrance’’ part consist of. In the second part, the studies in the literature and theoretical foundations of relationship between R&D and economic growth are discussed. ‘’Methodology and Terminology’’ in the third section, belongs to a part of the study methods and data applications are introduced; the fourth section presents the results of practice tests are given. As a result of the findings obtained, it was concluded that spending on R&D affects positively the economic growth in the short and long term. It is important for the Turkish Economy to increase the expence of R&D sistematically in the long term in order to achieve sustainability.

Keywords

R&D Expenditures, Economic Growth, ARDL Bound Test.

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