THE RELATIONSHIP BETWEEN R&D EXPENDITURES AND ECONOMIC GROWTH WITHIN THE SCOPE OF ENDOGENOUS GROWTH THEORIES: TIME SERIES ANALYSIS FOR TURKEY

Abstract

The main purpose of this study investigate the relationship between R&D expenditures and economic growth for Turkey economy based on the 1990-2020 period. The model created within the scope of endogenous growth theories includes economic growth, R&D expenditures, human capital and trade openness series. As a consequence of the unit root test, the series are stationary at rank 1 and this situation making possible to apply the Johansen and Juselius cointegration analysis. Afterwards, the effects of the series on economic growth are investigated using the FMOLS estimation method. The causality relationship between variables is examined with the aid of the Granger causality test. Empirical findings; The existence of cointegration between the variables in the regression equation has been determined. According to the long-term estimation method FMOLS, it has been determined that the variables of R&D expenditures, human capital and trade openness increase economic growth. Causality test results prove the existence of one-way causality from economic growth to R&D expenditures..