Research Article
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Year 2018, Volume: 10 Issue: 2, 1 - 21, 31.12.2018

Yavuz Yıldırım Feyza Balan

Abstract

References

  • Akcali, Burcay Y. & Elcin Sismanoğlu. “Innovation and the Effect of Research and Development (R&D) Expenditure on Growth in Some Developing and Developed Countries”, Procedia-Social and Behavioral Sciences. 195, 2015, 768- 775.
  • Bassanini, Andrea & Scarpetta, Stefano. “The Driving Forces of Economic Growth: Panel Data Evidence for The OECD Countries”, OECD Economic Studies. 2001, No. 33.
  • Breusch, Trevor S. & Pagan, Andrea R. The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics, Review of Economic Studies. 47:1, 1980, 239-253.
  • Cortright, Joseph. New Growth Theory, Technology and Learning: A Practitioner’s Guide (No. 4). Washington, DC: US Economic Development Administration, 2001.
  • Ductor, Lorenzo & Grechyna, Daryna (2013). Financial Development, Technological Progress and Economic Growth, SSRN:http://ssrn.com/abstract=1997526 or http://dx.doi.org/10.2139/ssrn.1997526 [İndirme Tarihi: 7.01.2016] Dumitrescu, Elena-Ivona & Christophe Hurlin. “Testing for Granger noncausality in heterogeneous panels”. Economic Modelling, 29:4, July 2012 1450- 1460.
  • Eichengreen, Barry. “Financial Instability”, in: Byorn Lomborg, (Ed), Global Crises, Global Solutions. New York: Cambridge University Press, 2004, pp. 251- 280.
  • Freire-Serén M. J. (1999). “Aggregate R&D expenditure and endogenous economic growth”, UFAE and IAE Working Papers. No. WP 43699. Barcelona, Spain: Unitat de Fonaments de l’Anàlisi Econòmica (UAB) and Institut d’Anàlisi Econòmica (CSIC), 1999.
  • Grosman, Gene M. & Elhanan Helpman. Innovation and Growth in the Global Economy. Cambridge: MIT Press, 1991.
  • Guloğlu, Bulent. & R. Barıs Tekin. “A Panel Causality Analysis of the Relationship Among Research And Development, Innovation, and Economic Growth in High-Income OECD Countries”, Eurasian Economic Review, 2:1, June 2012, 32-47.
  • Hadri, Kaddour & Eiji Kurozumi. “A Simple Panel Stationarity Test in the Presence of Serial Correlation and a Common Factor”, Economics Letters. 115:1, April 2012, 31–34.
  • Hall, Bronwyn H. “Research and Development”, in: William A. Darity, (Ed), International Encyclopedia of the Social Sciences, 2nd edition. Detroit: Macmillan Reference USA, 2008, pp. 199-201.
  • Horvath, Roman. “Research & Development and Growth: A Bayesian Model Averaging Analysis”, Economic Modelling. 28:6, November 2011, 2669–2673.
  • Inekwe, John N. “The Contribution of R&D Expenditure to Economic Growth in Developing Economies”, Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement. 124:3, December 2015, 747-764.
  • Korkmaz, Suna. “Türkiye'de Ar-Ge Yatırımları ve Ekonomik Büyüme Arasındaki İlişkinin VAR Modeli İle Analizi”, Journal of Yaşar University. 20:5, 3320‐3330.
  • Kwiatkowski, Denis & Peter C.B. Phillips & Peter Schmidt & Yongcheoi Shin. “Testing the Null Hypothesis of Stationarity against the Alternative of a Unit Root: How Sure Are We that Economic Time Series Have a Unit Root?”, Journal of Econometrics. 54:1-3, October-December 1992, 159-178.
  • Lichtenberg, Frank R. “R&D investment and international productivity differences”, NBER Working Paper Series. No: 4161, September 1992.
  • Lucas, Robert E. Jr. “On the mechanics of development planning”, Journal of Monetary Economics. 22:1, July 1988, 3-42
  • Masino, Serena. “Macroeconomic Volatility, Institutional Instability and the Incentive to Innovate”, Review of Development Economics. 19:1, February 2015, 116-131.
  • Özcan, Burcu & Ayşe Arı. “The Relationship Between R&D Expenditures and Economic Growth: Panel Data Analysis”, Maliye Dergisi. 166, Ocak-Haziran 2014, 39-55.
  • Pesaran, M. Hashem. “Estimation and Inference in Large Heterogeneous Panels with Multifactor Error Structure”, Econometrica. 74:4, July 2006, 967-1012.
  • PRS Group (2015). ICRG Methodology, The Financial Risk Rating, http://www.icrgonline.com/page.aspx?page=icrgmethods, [İndirme Tarihi: 21.05.2015]
  • PRS Group (2015). ICRG Methodology, The Political Risk Rating, http://www.icrgonline.com/page.aspx?page=icrgmethods, [İndirme Tarihi: 21.05.2015]
  • Ramsey, Frank. “A Mathematical Theory of Saving”, Economic Journal. 38, December 1928, 543-559.
  • Romer, Paul M. “Increasing Returns and Long-Run Growth”, Journal of Political Economy. 94:5, October 1986, 1002-1037.
  • Saraç, B. T. “Araştırma-Geliştirme Harcamalarının Ekonomik Büyüme Üzerindeki Etkisi: Panel Veri Analizi”. EconAnadolu 2009: Anadolu International Conference in Economics, June 17-19, 2009, Eskişehir, Turkey.
  • Solow, Robert M. “A Contribution to Theory of Economic Growth”, American Economic Review. 57:2, May 1956, 65-94.
  • Swan, Trevor W. “Economic Growth and Capital Accumulation”, Economic Record. 32, November 1956, 334-361.
  • Varsakelis, Nikos C. “Education, Political Institutions and Innovative Activity: A Cross-Country Empirical Investigation”, Research Policy. 35:7, September 2006, 1083–1090.
  • Waguespack, David Matthew & Jóhanna Kristín Birnir & Jeff Schroeder. “Technological Development and Political stability: Patenting in Latin America and the Caribbean”, Research Policy. 34:10, December 2005, 1570–1590.
  • World Bank (2015). World Development Indicators, http://data.worldbank.org/indicator, [İndirme Tarihi: 21.05.2015]

KEY ROLE OF R&D INTENSITY ON POLITICAL AND FINANCIAL STABILITY: EVIDENCE FROM THE G-8 COUNTRIES

Year 2018, Volume: 10 Issue: 2, 1 - 21, 31.12.2018

Yavuz Yıldırım Feyza Balan

Abstract

The concept of globalization has increased the importance of the expenditures on
R&D, which are well known as the fundamental source for economic growth of
both developing and developed countries. Even though, there have been a great
number of studies subjected to the R&D-economic growth relationship, there have
rarely been studied on the subject of the relationship among R&D, political
stability and financial stability. In this regard, the main scope of this study is to
investigate the causal relationships between R&D intensity and political stability
and financial stability for G-8 countries during the period 1996-2013. Applying
the Dumitrescu-Hurlin panel non-causality test, the empirical findings of this
study shows that there exists a causal relationship running from R&D intensity to
political stability and financial stability. Moreover, this study shows that R&D
intensity has a positive and statistically significant effect on both political and
financial stability of the G-8 countries.

Keywords

Research and Development Expenditures Political Stability Financial Stability Panel Causality

References

  • Akcali, Burcay Y. & Elcin Sismanoğlu. “Innovation and the Effect of Research and Development (R&D) Expenditure on Growth in Some Developing and Developed Countries”, Procedia-Social and Behavioral Sciences. 195, 2015, 768- 775.
  • Bassanini, Andrea & Scarpetta, Stefano. “The Driving Forces of Economic Growth: Panel Data Evidence for The OECD Countries”, OECD Economic Studies. 2001, No. 33.
  • Breusch, Trevor S. & Pagan, Andrea R. The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics, Review of Economic Studies. 47:1, 1980, 239-253.
  • Cortright, Joseph. New Growth Theory, Technology and Learning: A Practitioner’s Guide (No. 4). Washington, DC: US Economic Development Administration, 2001.
  • Ductor, Lorenzo & Grechyna, Daryna (2013). Financial Development, Technological Progress and Economic Growth, SSRN:http://ssrn.com/abstract=1997526 or http://dx.doi.org/10.2139/ssrn.1997526 [İndirme Tarihi: 7.01.2016] Dumitrescu, Elena-Ivona & Christophe Hurlin. “Testing for Granger noncausality in heterogeneous panels”. Economic Modelling, 29:4, July 2012 1450- 1460.
  • Eichengreen, Barry. “Financial Instability”, in: Byorn Lomborg, (Ed), Global Crises, Global Solutions. New York: Cambridge University Press, 2004, pp. 251- 280.
  • Freire-Serén M. J. (1999). “Aggregate R&D expenditure and endogenous economic growth”, UFAE and IAE Working Papers. No. WP 43699. Barcelona, Spain: Unitat de Fonaments de l’Anàlisi Econòmica (UAB) and Institut d’Anàlisi Econòmica (CSIC), 1999.
  • Grosman, Gene M. & Elhanan Helpman. Innovation and Growth in the Global Economy. Cambridge: MIT Press, 1991.
  • Guloğlu, Bulent. & R. Barıs Tekin. “A Panel Causality Analysis of the Relationship Among Research And Development, Innovation, and Economic Growth in High-Income OECD Countries”, Eurasian Economic Review, 2:1, June 2012, 32-47.
  • Hadri, Kaddour & Eiji Kurozumi. “A Simple Panel Stationarity Test in the Presence of Serial Correlation and a Common Factor”, Economics Letters. 115:1, April 2012, 31–34.
  • Hall, Bronwyn H. “Research and Development”, in: William A. Darity, (Ed), International Encyclopedia of the Social Sciences, 2nd edition. Detroit: Macmillan Reference USA, 2008, pp. 199-201.
  • Horvath, Roman. “Research & Development and Growth: A Bayesian Model Averaging Analysis”, Economic Modelling. 28:6, November 2011, 2669–2673.
  • Inekwe, John N. “The Contribution of R&D Expenditure to Economic Growth in Developing Economies”, Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement. 124:3, December 2015, 747-764.
  • Korkmaz, Suna. “Türkiye'de Ar-Ge Yatırımları ve Ekonomik Büyüme Arasındaki İlişkinin VAR Modeli İle Analizi”, Journal of Yaşar University. 20:5, 3320‐3330.
  • Kwiatkowski, Denis & Peter C.B. Phillips & Peter Schmidt & Yongcheoi Shin. “Testing the Null Hypothesis of Stationarity against the Alternative of a Unit Root: How Sure Are We that Economic Time Series Have a Unit Root?”, Journal of Econometrics. 54:1-3, October-December 1992, 159-178.
  • Lichtenberg, Frank R. “R&D investment and international productivity differences”, NBER Working Paper Series. No: 4161, September 1992.
  • Lucas, Robert E. Jr. “On the mechanics of development planning”, Journal of Monetary Economics. 22:1, July 1988, 3-42
  • Masino, Serena. “Macroeconomic Volatility, Institutional Instability and the Incentive to Innovate”, Review of Development Economics. 19:1, February 2015, 116-131.
  • Özcan, Burcu & Ayşe Arı. “The Relationship Between R&D Expenditures and Economic Growth: Panel Data Analysis”, Maliye Dergisi. 166, Ocak-Haziran 2014, 39-55.
  • Pesaran, M. Hashem. “Estimation and Inference in Large Heterogeneous Panels with Multifactor Error Structure”, Econometrica. 74:4, July 2006, 967-1012.
  • PRS Group (2015). ICRG Methodology, The Financial Risk Rating, http://www.icrgonline.com/page.aspx?page=icrgmethods, [İndirme Tarihi: 21.05.2015]
  • PRS Group (2015). ICRG Methodology, The Political Risk Rating, http://www.icrgonline.com/page.aspx?page=icrgmethods, [İndirme Tarihi: 21.05.2015]
  • Ramsey, Frank. “A Mathematical Theory of Saving”, Economic Journal. 38, December 1928, 543-559.
  • Romer, Paul M. “Increasing Returns and Long-Run Growth”, Journal of Political Economy. 94:5, October 1986, 1002-1037.
  • Saraç, B. T. “Araştırma-Geliştirme Harcamalarının Ekonomik Büyüme Üzerindeki Etkisi: Panel Veri Analizi”. EconAnadolu 2009: Anadolu International Conference in Economics, June 17-19, 2009, Eskişehir, Turkey.
  • Solow, Robert M. “A Contribution to Theory of Economic Growth”, American Economic Review. 57:2, May 1956, 65-94.
  • Swan, Trevor W. “Economic Growth and Capital Accumulation”, Economic Record. 32, November 1956, 334-361.
  • Varsakelis, Nikos C. “Education, Political Institutions and Innovative Activity: A Cross-Country Empirical Investigation”, Research Policy. 35:7, September 2006, 1083–1090.
  • Waguespack, David Matthew & Jóhanna Kristín Birnir & Jeff Schroeder. “Technological Development and Political stability: Patenting in Latin America and the Caribbean”, Research Policy. 34:10, December 2005, 1570–1590.
  • World Bank (2015). World Development Indicators, http://data.worldbank.org/indicator, [İndirme Tarihi: 21.05.2015]
There are 30 citations in total.

Details

Primary Language English
Subjects Business Administration
Journal Section Research Article
Authors

Yavuz Yıldırım

Feyza Balan This is me

Publication Date December 31, 2018
Published in Issue Year 2018 Volume: 10 Issue: 2

Cite

APA Yıldırım, Y., & Balan, F. (2018). KEY ROLE OF R&D INTENSITY ON POLITICAL AND FINANCIAL STABILITY: EVIDENCE FROM THE G-8 COUNTRIES. International Journal of Economics and Finance Studies, 10(2), 1-21.
AMA Yıldırım Y, Balan F. KEY ROLE OF R&D INTENSITY ON POLITICAL AND FINANCIAL STABILITY: EVIDENCE FROM THE G-8 COUNTRIES. IJEFS. December 2018;10(2):1-21.
Chicago Yıldırım, Yavuz, and Feyza Balan. “KEY ROLE OF R&D INTENSITY ON POLITICAL AND FINANCIAL STABILITY: EVIDENCE FROM THE G-8 COUNTRIES”. International Journal of Economics and Finance Studies 10, no. 2 (December 2018): 1-21.
EndNote Yıldırım Y, Balan F (December 1, 2018) KEY ROLE OF R&D INTENSITY ON POLITICAL AND FINANCIAL STABILITY: EVIDENCE FROM THE G-8 COUNTRIES. International Journal of Economics and Finance Studies 10 2 1–21.
IEEE Y. Yıldırım and F. Balan, “KEY ROLE OF R&D INTENSITY ON POLITICAL AND FINANCIAL STABILITY: EVIDENCE FROM THE G-8 COUNTRIES”, IJEFS, vol. 10, no. 2, pp. 1–21, 2018.
ISNAD Yıldırım, Yavuz - Balan, Feyza. “KEY ROLE OF R&D INTENSITY ON POLITICAL AND FINANCIAL STABILITY: EVIDENCE FROM THE G-8 COUNTRIES”. International Journal of Economics and Finance Studies 10/2 (December 2018), 1-21.
JAMA Yıldırım Y, Balan F. KEY ROLE OF R&D INTENSITY ON POLITICAL AND FINANCIAL STABILITY: EVIDENCE FROM THE G-8 COUNTRIES. IJEFS. 2018;10:1–21.
MLA Yıldırım, Yavuz and Feyza Balan. “KEY ROLE OF R&D INTENSITY ON POLITICAL AND FINANCIAL STABILITY: EVIDENCE FROM THE G-8 COUNTRIES”. International Journal of Economics and Finance Studies, vol. 10, no. 2, 2018, pp. 1-21.
Vancouver Yıldırım Y, Balan F. KEY ROLE OF R&D INTENSITY ON POLITICAL AND FINANCIAL STABILITY: EVIDENCE FROM THE G-8 COUNTRIES. IJEFS. 2018;10(2):1-21.