IDEAS home Printed from https://ideas.repec.org/a/ist/iujepr/v9y2022i1p205-229.html
   My bibliography  Save this article

Assessing the Impact of High-Technology Exports on the Growth of the Turkish Economy

Author

Listed:
  • Emrah Sofuoğlu

    (Ahi Evran University, Faculty of Economics and Administrative Sciences, Department of Economics, Kırşehir, Turkey)

  • Oktay Kızılkaya

    (Ahi Evran University, Faculty of Economics and Administrative Sciences, Department of Economics, Kırşehir, Turkey)

  • Emrah Koçak

    (Erciyes University, Faculty of Economics and Administrative Sciences, Department of Economics, Kayseri, Turkey)

Abstract

High technology product export is emerging as one of the issues that economists have discussed frequently in recent years. Increasing the high-tech product export performance provides a competitive advantage in international trade for countries. To this extent, this study aims to determine the impact of high technology product export on economic growth for Turkey over the period 1990-2019. For the empirical analysis, Hatemi-J (2008), Gregory and Hansen (1996) Fully Modified Ordinary Least Squares (FMOLS), DOLS, and Canonical cointegration regression (CCR) methods are utilized. According to the Hatemi-J cointegration test, there is a long-term relationship between high-technology product export, fixed capital formation, and economic growth, yet a structural break was detected for 2008. In addition, the Gregory and Hansen test result also confirms the cointegration relationship under structural breaks for 2003 and 2006. FMOLS, DOLS, and CCR long-term coefficient test results indicate that high technology product export positively impacts economic growth. The fundamental policy recommendation of this study is to increase financial resources to boost high-tech exports and thus economic growth.

Suggested Citation

  • Emrah Sofuoğlu & Oktay Kızılkaya & Emrah Koçak, 2022. "Assessing the Impact of High-Technology Exports on the Growth of the Turkish Economy," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 9(1), pages 205-229, January.
    • Handle: RePEc:ist:iujepr:v:9:y:2022:i:1:p:205-229
    DOI: 10.26650/JEPR950483
    as

    Download full text from publisher

    File URL: https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/AFFCE985315E45DFA25EF49357D48A60
    Download Restriction: no
    File URL: https://iupress.istanbul.edu.tr/en/journal/jepr/article/assessing-the-impact-of-high-technology-exports-on-the-growth-of-the-turkish-economy
    Download Restriction: no
    File URL: https://libkey.io/10.26650/JEPR950483?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Park, Joon Y, 1992. "Canonical Cointegrating Regressions," Econometrica, Econometric Society, vol. 60(1), pages 119-143, January.
    3. Grossman, Gene M & Helpman, Elhanan, 1990. "Comparative Advantage and Long-run Growth," American Economic Review, American Economic Association, vol. 80(4), pages 796-815, September.
    4. Stock, James H & Watson, Mark W, 1993. "A Simple Estimator of Cointegrating Vectors in Higher Order Integrated Systems," Econometrica, Econometric Society, vol. 61(4), pages 783-820, July.
    5. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    6. Ricardo, David, 1821. "On the Principles of Political Economy and Taxation," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, edition 3, number ricardo1821.
    7. Wakelin, Katharine, 2001. "Productivity growth and R&D expenditure in UK manufacturing firms," Research Policy, Elsevier, vol. 30(7), pages 1079-1090, August.
    8. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 407-443.
    9. Dilip K. Das, 1998. "Changing Comparative Advantage and the Changing Composition of Asian Exports," The World Economy, Wiley Blackwell, vol. 21(1), pages 121-140, January.
    10. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
    11. Rifat A. Atun & Ian Harvey & Joff Wild, 2007. "Innovation, Patents And Economic Growth," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 11(02), pages 279-297.
    12. Gregory, Allan W. & Hansen, Bruce E., 1996. "Residual-based tests for cointegration in models with regime shifts," Journal of Econometrics, Elsevier, vol. 70(1), pages 99-126, January.
    13. Wen-Hsien Liu & Ya-Chi Lin, 2005. "Foreign patent rights and high-tech exports: evidence from Taiwan," Applied Economics, Taylor & Francis Journals, vol. 37(13), pages 1543-1555.
    14. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    15. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
    16. Peter C. B. Phillips & Bruce E. Hansen, 1990. "Statistical Inference in Instrumental Variables Regression with I(1) Processes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(1), pages 99-125.
    17. J. M. Keynes, 1937. "The General Theory of Employment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 51(2), pages 209-223.
    18. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    19. Appiah-Otoo, Isaac & Song, Na, 2021. "The impact of ICT on economic growth-Comparing rich and poor countries," Telecommunications Policy, Elsevier, vol. 45(2).
    20. Nair, Mahendhiran & Pradhan, Rudra P. & Arvin, Mak B., 2020. "Endogenous dynamics between R&D, ICT and economic growth: Empirical evidence from the OECD countries," Technology in Society, Elsevier, vol. 62(C).
    21. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    22. Krugman, Paul R., 2000. "Technology, trade and factor prices," Journal of International Economics, Elsevier, vol. 50(1), pages 51-71, February.
    23. Rifat A. Atun & Ian Harvey & Joff Wild, 2007. "Innovation, Patents And Economic Growth," World Scientific Book Chapters, in: Rifat A Atun & Desmond Sheridan (ed.), Innovation In The Biopharmaceutical Industry, chapter 4, pages 65-83, World Scientific Publishing Co. Pte. Ltd..
    24. Janusz Myszczyszyn, 2020. "The Long-run Relationships between Number of Patents and Economic Growth," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 548-563.
    25. Petr Hanel, 2000. "R&D, Interindustry and International Technology Spillovers and the Total Factor Productivity Growth of Manufacturing Industries in Canada, 1974-1989," Economic Systems Research, Taylor & Francis Journals, vol. 12(3), pages 345-361.
    26. Maryam Farhadi Kooshki Author_Email: farhadim58@gmail.com & Rahmah Ismail, 2011. "The Impact Of Information And Communication Technology Investment Externalities On Economic Growth In Newly Industrialized Countries," 2nd International Conference on Business and Economic Research (2nd ICBER 2011) Proceeding 2011-251, Conference Master Resources.
    27. Montalvo, Jose G., 1995. "Comparing cointegrating regression estimators: Some additional Monte Carlo results," Economics Letters, Elsevier, vol. 48(3-4), pages 229-234, June.
    28. Pohjola, Matti, "undated". "Information Technology and Economic Growth: A Cross-Country Analysis," WIDER Working Papers 295500, United Nations University, World Institute for Development Economic Research (UNU-WIDER).
    29. Albert G.Z. Hu & I.P.L. Png, 2013. "Patent rights and economic growth: evidence from cross-country panels of manufacturing industries," Oxford Economic Papers, Oxford University Press, vol. 65(3), pages 675-698, July.
    30. Chao Liu & Guanjun Xia, 2018. "Research on the Dynamic Interrelationship among R&D Investment, Technological Innovation, and Economic Growth in China," Sustainability, MDPI, vol. 10(11), pages 1-19, November.
    31. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    32. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    33. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    34. Mahjus Ekananda & Dion Jogi Parlinggoman, 2017. "The Role of High-Tech Exports and of Foreign Direct Investments (FDI) on Economic Growth," European Research Studies Journal, European Research Studies Journal, vol. 0(4A), pages 194-212.
    35. Bulent Guloglu & R. Tekin, 2012. "A Panel Causality Analysis of the Relationship among Research and Development, Innovation, and Economic Growth in High-Income OECD Countries," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 2(1), pages 32-47, June.
    36. Bilgin, Cevat & Sahbaz, Ahmet, 2009. "Türkiye’de Büyüme ve İhracat Arasındaki Nedensellik İlişkileri [Causality Relations between Growth and Export in Turkey]," MPRA Paper 21985, University Library of Munich, Germany, revised 2009.
    37. World Bank, 2014. "World Development Indicators 2014," World Bank Publications - Books, The World Bank Group, number 18237.
    38. Marx, Karl, 1867. "Capital: A Critique of Political Economy (I): The Process of Capitalist Production," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, volume 1, number marx1867.
    39. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    40. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    41. Abdulnasser Hatemi-J, 2008. "Tests for cointegration with two unknown regime shifts with an application to financial market integration," Empirical Economics, Springer, vol. 35(3), pages 497-505, November.
    42. M. V. Posner, 1961. "International Trade And Technical Change," Oxford Economic Papers, Oxford University Press, vol. 13(3), pages 323-341.
    43. Stephen D. Oliner & Daniel E. Sichel, 1994. "Computers and Output Growth Revisited: How Big Is the Puzzle?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(2), pages 273-334.
    44. Hasan, Iftekhar & Tucci, Christopher L., 2010. "The innovation-economic growth nexus: Global evidence," Research Policy, Elsevier, vol. 39(10), pages 1264-1276, December.
    45. Vu, Khuong M., 2013. "Information and Communication Technology (ICT) and Singapore’s economic growth," Information Economics and Policy, Elsevier, vol. 25(4), pages 284-300.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Maha Mohamed Alsebai Mohamed & Pingfeng Liu & Guihua Nie, 2022. "Causality between Technological Innovation and Economic Growth: Evidence from the Economies of Developing Countries," Sustainability, MDPI, vol. 14(6), pages 1-39, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Utku Utkulu & Durmus Özdemir, 2005. "Does Trade Liberalization Cause a Long Run Economic Growth in Turkey," Economic Change and Restructuring, Springer, vol. 37(3), pages 245-266, September.
    2. Aurora Teixeira & Natércia Fortuna, 2003. "Human Capital, Innovation Capability and Economic Growth," FEP Working Papers 131, Universidade do Porto, Faculdade de Economia do Porto.
    3. Rana P. Maradana & Rudra P. Pradhan & Saurav Dash & Kunal Gaurav & Manju Jayakumar & Debaleena Chatterjee, 2017. "Does innovation promote economic growth? Evidence from European countries," Journal of Innovation and Entrepreneurship, Springer, vol. 6(1), pages 1-23, December.
    4. Kumar, Saten & Pacheco, Gail, 2012. "What determines the long run growth rate in Kenya?," Journal of Policy Modeling, Elsevier, vol. 34(5), pages 705-718.
    5. Koçak Emrah & Uzay Nısfet, 2019. "The effect of financial development on income inequality in Turkey: An estimate of the Greenwood-Jovanovic hypothesis," Review of Economic Perspectives, Sciendo, vol. 19(4), pages 319-344, December.
    6. Palakiyèm Kpemoua, 2016. "Levels Of Education And Economic Performances Of Togo [Niveaux D’Education Et Performances Economiques Du Togo]," Working Papers halshs-01506650, HAL.
    7. repec:ebl:ecbull:v:2:y:2002:i:1:p:1-15 is not listed on IDEAS
    8. Kumar, Ronald Ravinesh & Stauvermann, Peter Josef & Samitas, Aristeidis, 2016. "The effects of ICT⁎ on output per worker: A study of the Chinese economy," Telecommunications Policy, Elsevier, vol. 40(2), pages 102-115.
    9. Antonelli, Cristiano & Amidei, Federico Barbiellini & Fassio, Claudio, 2014. "The mechanisms of knowledge governance: State owned enterprises and Italian economic growth, 1950–1994," Structural Change and Economic Dynamics, Elsevier, vol. 31(C), pages 43-63.
    10. David EA Giles, 2005. "Output Convergence and International Trade: Time-Series and Fuzzy Clustering Evidence for New Zealand and her Trading Partners, 1950 - 1992," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 14(1), pages 93-114.
    11. Aykut Kibritçioglu, 2002. "On the Smithian origins of "new" trade and growth theories," Economics Bulletin, AccessEcon, vol. 2(1), pages 1-15.
    12. Jacobo Campo Robledo & Juan Pablo Herrera Saavedra, 2016. "Patentes y crecimiento económico: ¿innovación de residentes o no residentes?," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 76, February.
    13. Fulvio Castellacci, 2007. "Evolutionary And New Growth Theories. Are They Converging?," Journal of Economic Surveys, Wiley Blackwell, vol. 21(3), pages 585-627, July.
    14. Magrini, Stefano, 2004. "Regional (di)convergence," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 62, pages 2741-2796, Elsevier.
    15. Vicente Esteve, 2004. "Política fiscal y productividad del trabajo en la economía española: un análisis de series temporales," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 19(1), pages 3-29, June.
    16. Yifru, Tigist, 2015. "Impact Of Agricultural Exports On Economic Growth In Ethiopia: The Case Of Coffee, Oilseed And Pulses," Research Theses 265676, Collaborative Masters Program in Agricultural and Applied Economics.
    17. Fethi, Meryem Duygun & Fethi, Sami & Katircioglu, Salih Turan, 2008. "Does Trade Policy Matter in an Isolated Economy? A Case Study," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 61(4), pages 637-664.
    18. Dakpogan, Arnaud & Smit, Eon, 2018. "The effect of electricity losses on GDP in Benin," MPRA Paper 89545, University Library of Munich, Germany.
    19. Ayres, Robert U, 2001. "The minimum complexity of endogenous growth models:," Energy, Elsevier, vol. 26(9), pages 817-838.
    20. Nguyen, Canh Phuc & Doytch, Nadia, 2022. "The impact of ICT patents on economic growth: An international evidence," Telecommunications Policy, Elsevier, vol. 46(5).
    21. Md Shahiduzzaman & Allan Layton & Khorshed Alam, 2015. "On the contribution of information and communication technology to productivity growth in Australia," Economic Change and Restructuring, Springer, vol. 48(3), pages 281-304, November.

    More about this item

    Keywords

    High technology product export; Economic growth; Fixed capital formation; Structural break cointegration; Hatemi-J cointegration JEL Classification : F43 ; O14 ; O47;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ist:iujepr:v:9:y:2022:i:1:p:205-229. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ertugrul YASAR (email available below). General contact details of provider: https://edirc.repec.org/data/ifisttr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.