The Effects of Research and Development (R&D) Investments on Sustainable Economic Growth: Evidence from OECD Countries (1996-2015)
Yazgan Şekip () and
Yalçinkaya Ömer ()
Additional contact information
Yazgan Şekip: Department of Economics, Agri Ibrahim Çeçen University, Ağrı, Turkey
Yalçinkaya Ömer: Department of Economics, Agri Ibrahim Çeçen University, Ağrı, Turkey.
Review of Economic Perspectives, 2018, vol. 18, issue 1, 3-23
This study is devoted to the empirical analysis by second generation panel data analysis of the effects of the R&D investment variables in different qualifications in OECD countries grouped as OECD-20 and OECD-9 based on the income levels of the economic growth for the period of 1996-2015. Within this context, the purpose of this study is to evaluate whether or not the economic growth performances of OECD-20 and OECD-9 countries have a sustainable structure that endogenizes the technological advancements and occurs by the increments in average factor productivity. At the end of the paper it is determined that all the R&D variables in different qualifications of the OECD-20 group have a higher income level in sample period and have positive and statistically significant effects on the economic growth. On the other hand, only the private sector, universities and the total R&D investments have positive and statistically significant effects on the economic growth of the OECD-9 group which has comparatively lower income level. However, it is specified that the size of the positive and statistically significant effects of the R&D investment variables in different qualifications is more than two times bigger in the OECD-20 group as opposed to the OECD-9 group. These results reveal that the economic performances of OECD-20 countries in the investigated period have a more substantial relation with the qualified and sustainable structure that endogenizes the technologic advancements and occurs by the increments in average factor productivity. All of this shows that the R&D investments also are substantially sufficient to change the long-term economic growth performances and income levels of the countries in OECD-20 and OECD-9 groups.
Keywords: R&D Investments; Technological Advancement; Sustainable Economic Growth; Endogenous Growth Theories; OECD Countries; Second Generation Panel Data Analysis (search for similar items in EconPapers)
JEL-codes: B22 C49 O32 O40 (search for similar items in EconPapers)
References: Add references at CitEc
Citations Track citations by RSS feed
Downloads: (external link)
https://www.degruyter.com/view/j/revecp.2018.18.is ... -0001.xml?format=INT (text/html)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:vrs:reoecp:v:18:y:2018:i:1:p:3-23:n:1
Access Statistics for this article
Review of Economic Perspectives is currently edited by Antonín Slaný
More articles in Review of Economic Perspectives from Sciendo
Bibliographic data for series maintained by Peter Golla ().