The Relationship between Research & Development Investment Expenditure, Foreign Direct Investment and Economic Growth: Panel Causality and Cointegration Analysis for G-7 Countries
The Relationship between Research & Development Investment Expenditure, Foreign Direct Investment and Economic Growth: Panel Causality and Cointegration Analysis for G-7 Countries
Author(s): Muhlis Can, Buhari Doğan, Osman DeğerSubject(s): Economy, Economic development, Transformation Period (1990 - 2010), Present Times (2010 - today)
Published by: Reprograph
Keywords: R&D expenditures; G-7 countries; foreign direct investments; economic growth; panel causality; panel cointegration;
Summary/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.
Journal: Journal of Applied Economic Sciences (JAES)
- Issue Year: XII/2017
- Issue No: 47
- Page Range: 58-62
- Page Count: 5
- Language: English