Abstract
THE RELATIONSHIP BETWEEN R&D EXPENDITURES AND ECONOMIC GROWTH: PANEL DATA ANALYSIS
The purpose of this study is to explore the relationship between R & D expenditure and economic growth for the period 2006 - 2015 using data from 22 OECD countries. Panel unit root tests were performed for this purpose, panel cointegration tests and panel causality analysis were used. GDP per capita was used as an indicator of economic growth and R & D expenditures (RD) per capita were used as indicators of R & D expenditures. Economic growth data was obtained from the OECD website in 2005 - 2017. R & D expenditure data was obtained from the Eurostat website during 2006 - 2015. Since OECD is comprehensive, OECD countries with R & D expenditure data were selected and put into panel data for the same years (2006 - 2015). As a result of unit root test with both variables (GDP and RD), the series became stationary when the first differences were taken. It is determined that the cointegration relation exists in said counties between two variables as a result of Kao and Pedroni panel cointegration tests performed by keeping the first differences of series determined as non-stationary at level. As a result of Granger causality analysis; It has been proven that there is a mutually significant relationship between R & D expenditures and economic growth variables.
Keywords
Panel unit root test, panel Granger causality analyses, panel data analyses, panel cointagration tes
