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The Role of Knowledge on Economic Growth: The Case of Turkey, 1963-2010

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  • Fatma M. Utku-İsmihan

    (TEKPOL, Science and Technology Policy Studies, Middle East Technical University)

Abstract

The importance of knowledge for long-run economic growth has long been an important research area for economists and policy makers. This paper attempts to analyze the impact of knowledge on economic growth in Turkey over the 1963-2010 period, by using a production function approach. In contrast to early studies, which have analyzed the impact of a single dimension of knowledge on economic growth, a knowledge index is constructed to see the impact of various dimensions of knowledge with a single and comprehensive measure of the “level” of knowledge in the economy. Moreover, time series methods -such as cointegration and impulse response analysis- are used to analyze the role of knowledge on economic growth in Turkey. The empirical results indicate that higher level of knowledge had a positive impact on the growth rate of Turkish economy over the sample period. It is, therefore, necessary to create an economic environment that is conducive to enhance the level of knowledge and hence economic growth in Turkey.

Suggested Citation

  • Fatma M. Utku-İsmihan, 2012. "The Role of Knowledge on Economic Growth: The Case of Turkey, 1963-2010," STPS Working Papers 1207, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised Sep 2012.
    • Handle: RePEc:met:stpswp:1207
    as

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    File URL: http://www.stps.metu.edu.tr/sites/stps.metu.edu.tr/files/1207_0.pdf
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    References listed on IDEAS

    as
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    Keywords

    Knowledge; Economic Growth; Turkey;
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