The relationship between research & development investment expenditure, foreign direct investment and economic growth: Panel causality and cointegration analysis for G-7 countries


Can M., DOĞAN B., DEĞER O.

Journal of Applied Economic Sciences, vol.12, no.1, pp.58-69, 2017 (Scopus) identifier

  • Publication Type: Article / Article
  • Volume: 12 Issue: 1
  • Publication Date: 2017
  • Journal Name: Journal of Applied Economic Sciences
  • Journal Indexes: Scopus
  • Page Numbers: pp.58-69
  • Keywords: Economic growth, Foreign direct investments, G-7 countries, Panel causality, Panel cointegration, R&D expenditures
  • Hakkari University Affiliated: Yes

Abstract

In this study, it is aimed to investigate the relationship between research and development (R&D) expenditures, foreign direct investment and economic growth over the period 1996-2011 in the sample of G-7 countries. In the empirical part of the study, Pedroni and Kao Cointegration Tests, Panel Granger Causality have been employed. It has been observed that the series are cointegrated in the long-run. As a result of the causality analysis, it is concluded that there is a unidirectional causality runs from foreign direct investments to R&D expenditures and to economic growth, there is a unidirectional causality runs from economic growth to R&D expenditures.