THE RELATIONSHIP BETWEEN R D EXPENDITURES AND GROWTH IN TURKEY: ARDL APPROACH

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As the share of R D expenditures on GDP increases, so do technological innovations, and development which contribute to the sustainable growth. Technological development has significant effects on productivity and exports especially for developing countries. The aim of this study is to analyze the relationship between real GDP and total R D expenditures (R D/GDP) for the 1990-2016 period in Turkey. Because both series have different integration levels, cointegration analysis was performed by the ARDL boundary test. According to the long term coefficients of the ARDL model, the long term effect of the R D variable on GDP is positive and significant. The variance in GDP is consistently predicted by the R D variable and a 1% change in R D will increase real GDP by 5.92%. The coefficient of the error correction model is negative and statistically significant, and the absolute value is greater than 1. This indicates that short-term fluctuations will come to an equilibrium in the long term. The increase in Turkey’s R D expenditures will have a positive effect on high-tech product exports, which will then positively reflect on economic growth and current account balance in the long-run.

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R D , Growth , ARDL

Celal Bayar University Journal Of Social Sciences

160

Celal Bayar University Journal Of Social Sciences