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An Empirical Analysis of the Relationship between Research and Development Expenditures, Total Factor Productivity, and Economic Growth in Turkey

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  • Hamza Çeştepe

    (Zonguldak Bülent Ecevit Üniversitesi, Sosyal Bilimler Enstitüsü, İktisat Anabilim Dalı, Zonguldak, Türkiye)

  • Sezin Şıklı

    (Zonguldak Bülent Ecevit Üniversitesi, Sosyal Bilimler Enstitüsü, İktisat Anabilim Dalı, Zonguldak, Türkiye)

Abstract

Many studies have been conducted on the sources and effects of economic growth and its relationship with various macroeconomic variables. In this study, the relationship between research and development (R&D) expenditures, total factor productivity, and economic growth has been empirically investigated in the case of Turkey. Turkey’s 1990–2019 period data and the Granger causality analysis method were used for this purpose. The analysis discovered a one-way causality relationship between R&D expenditures and growth as well as between R&D expenditures and total factor productivity. In this context, Turkey should focus on policies that prioritize R&D and increase R&D expenditures. Furthermore, given that increases in total factor productivity boost growth, policymakers should implement policies that increase resource efficiency and R&D, and encourage the private sector to invest in these areas through tax breaks, financial incentives, and technical assistance.

Suggested Citation

  • Hamza Çeştepe & Sezin Şıklı, 2024. "An Empirical Analysis of the Relationship between Research and Development Expenditures, Total Factor Productivity, and Economic Growth in Turkey," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul Journal of Economics-Istanbul Iktisat Dergisi, vol. 0(40), pages 121-133, June.
    • Handle: RePEc:ijs:journl:v:0:y:2024:i:40:p:121-133
    DOI: 10.26650/ekoist.2024.40.1386773
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    References listed on IDEAS

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