THE IMPACT OF R&D, INNOVATION AND TRADE ON GROWTH: THE CASE OF THE G-8

Abstract

The spread of globalization and the developments in science and technology have caused the determinants of economic growth to change. Traditional growth theories have been replaced by endogenous growth theories. The aim of this study is to examine the effect of technology, innovation and high-tech exports on economic growth in G8 countries between 2010-2017. In this study, the variables of economic growth and R&D investments, number of patents, high technology exports (YTI) are used. In this context, Levin-Lin-Chu and Im-Peseran-Shin unit root tests were used in the study. Then Kao Cointegration Test and Panel Causality Test were applied.  According to the results obtained from the analysis; It has been determined that there is a unidirectional causality relationship from R&D investments and patent numbers to economic growth in the short run.  In addition, it has been determined that there is a co-integration relationship between economic growth and the number of R&D investments and patents in the long term, and high technology exports also positively affect economic growth.