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, cilt.12, sa.1, ss.58-69, 2017 (Scopus) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 12 Sayı: 1
  • Basım Tarihi: 2017
  • Dergi Adı: Journal of Applied Economic Sciences
  • Derginin Tarandığı İndeksler: Scopus
  • Sayfa Sayıları: ss.58-69
  • Anahtar Kelimeler: Economic growth, Foreign direct investments, G-7 countries, Panel causality, Panel cointegration, R&D expenditures
  • Hakkari Üniversitesi Adresli: Evet

Özet

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.