Does Research and Development Expenditure Impact High-Technology Export in Turkey: Evidence from ARDL Model

Elma Satrovic () and Adnan Muslija ()
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Elma Satrovic: Çağ University
Adnan Muslija: University of Sarajevo

A chapter in Emerging Trends in Banking and Finance, 2018, pp 52-61 from Springer

Abstract: Abstract This paper investigates the possible causal relationship between the research and development expenditure and high-technology export in Turkey. Time-series data are collected over the period ranging from 1995 to 2014. The motivation to conduct this research arose from the fact that research and development expenditures have an important role in contributing to high-technology export all over the world and both of these economic terms report increasing trend in the observed period. Moreover, up-to-date studies on the matter to do not take into account the case of Turkey, therefore there was a need to conduct an empirical research. For this purpose, this paper suggests the econometrics of time-series including Johansen cointegration test to explore the presence of cointegrating relationship between economic terms of interest. In addition, authors are interested to explore whether the causal relationship exists between research and development expenditure and high-technology export in Turkey and use Granger causality test for this purpose. In order to control for the potential reverse causality and in order to investigate the long- and short-run relationship between economic terms of interest, the paper suggests ARDL approach. Johansen cointegration test suggests the cointegrating relationship between the research and development expenditure and high-technology export. Granger causality test reports a bidirectional relationship between the economic terms of interest. Therefore, the research and development expenditure is reported to contribute to high-technology export. Besides that, results indicate that the improvement in high-technology export may contribute to research and development. In terms of ARDL model it is important to emphasize a significant positive short- and long-run relationship between economic terms of interest in the initial model. The extended model controls for the impact of economic freedom. The obtained results do not differ in sign and significance from the initial model. Therefore, the initial model can be considered stable.

Keywords: ARDL; Economic freedom; High-Tech export; Research and development expenditure; Turkey (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-030-01784-2_4

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DOI: 10.1007/978-3-030-01784-2_4

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