Relation Between R&D Expenditures And Economic Growth: Empirical Evidence From BRICS-T Countries
Relation Between R&D Expenditures And Economic Growth: Empirical Evidence From BRICS-T Countries

Author : Yavuz ÖZEK
Number of pages : 311-321

Abstract

The transformation process in the economic structure of world has made it obligatory for the countries to follow the developments in the fields of information, innovation and technology in order to achieve economic growth, increase efficiency and competitiveness. This is possible with the investments and expenditures made for research and development activities, which forms the basis of endogenous growth models. In this study, the effects of research and development expenditures on economic growth in BRICS-T are analyzed by employing annual data belonging to 2003 – 2017 period. Results obtained from panel data methods imply that research and development expenditure is effective on economic growth in only long run. On the other hand, when economy grows, research and development expenditures increase in the short run. In country specific analysis, bi-directional causation linkage is found only in the Turkish economy.

Keywords

R&D, Growth, Panel Data

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