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Research and Development and high Technology Exports in Selected Countries at Different Development Stages. A Panel Co-integration and Causality Analy

Authors:
Yusuf Bayraktutan at Kocaeli University
Yusuf Bayraktutan
Hanife Bıdırdı at Kocaeli University
Hanife Bıdırdı
Aziz Kutlar at Sakarya University
Aziz Kutlar
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Abstract

This study aiming to investigate the impact of research and development (R&D) expenditures and the number of researchers on the value of export in high and medium-high technology manufacturing industry using panel data analysis for countries with different levels of economic development for the period of 1996-2012, comprises of three parts. In the first part, the theoretical and empirical literature on R&D and exports is presented. In the second part, the impact of R&D on exports is analyzed empirically. Finally, empirical findings are interpreted. In two different models designed for empirical analysis, high and medium-high technology exports (HTEX) is selected as dependent variable, and R&D expenditure and the number of researchers (RP), are taken as a measure of technological capability in each model. Additionally, gross fixed capital formation (GFC), and foreign direct investment (FDI) inflows are employed to explain HTEX. The models are tested respectively. The results of analysis indicate that R&D and RP are most important determinants of HTEX for both groups of countries. Also, parameter estimations show that R&D expenditure elasticity of high-technology exports in developing countries is higher than that of developed ones. Besides, according to the estimation results of panel Vector Error Correction Model (VECM), while there is no short-run causality from R&D and RP to HTEX, there is short-run causality from GFC and FDI to HTEX. Moreover, since error correction term is negative and significant in these two models, we conclude that error correction mechanism has worked and the short-term imbalances have been fixed in the log-run. In the light of these empirical findings which present some important policy implications for developing countries that experience a technological gap compared to developed nations, to realize high value-added and sustainable export performance, policies transforming the structure of production and exports from the low-tech towards the high-tech by the way of supporting R&D activities and scientific and technological infrastructure are strongly recommended. Keywords: High-Tech Exports, R&D, Panel Cointegration, Panel VECM. JEL Classification: F10; F14; O14; O30; O38; C33
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FOM-Edition
FOM
Hochschule
für
Oekonomie
&
Management
Springer Gabler 2016
© Springer Fachmedien Wiesbaden.
This work is subject to copyright. All rights reserved. Current status.
Fehim Bakırcı
Thomas Heupel
Orhan Kocagöz
Üstün Özen
(Editors)
German-Turkish
Perspectives
on
IT and
Innovation
Management
Challenges and
Approaches
C
on
t
en
ts
Part I Introduction
1 R&D in Germany and Turkey – a Comparison
Andreas Kladroba
2 Knowledge and Innovation Economy – an Evaluation of Turkey
Fehim Bakırcı
3 Research and Development and high Technology Exports in Selected Countries
at Different Development Stages. A Panel Co-integration and Causality Analysis
Yusuf Bayraktutan, Hanife Bıdırdı and Aziz Kutlar
Part II Innovation
4 Business and Innovation
Kürşat Timuroğlu, Ersin Karaman and Mustafa Keskinkılıç
5 Strategic reorientation due to competitors’ disruptive innovation
Alexander Schmidt
6 Public Innovation Management Support in Rural Areas: The ARTIE Case in
Germany
Hartmut-Heinrich Meyer and Bastian Paulsen
7 The Innovative Role of Social Media in Healthcare
İmran Aslan
8 The analysis of factors that affect innovation performance of logistic enterprises
in Turkey
Osman Demirdöğen, Hamit Erdal and Ahmet İlker Akbaba
IV
V
C
on
t
en
ts
9 Corporate evaluation as an instrument of innovation management in Turkey
Sven Lauterjung and Alessandra Bugla
10 An Assessment on Innovative Activity and Performance of Turkish Logistics
Sector
Osman Demirdöğen and Hamit Erdal
11 Determining Performances of Innovation and Exports in Turkey via Malmquist
Index for the Period of 1996-2012
Aziz Kutlar, Yusuf Bayraktutan and Hanife Bıdırdı
12 Structure Genesis as a Factor of Success of Interorganisational Innovation
Networks
Axel Müller and Sylvia Pick Vidal
13 Knowledge transfer as Driver for Innovation Culture in Heterogeneous
Economic Zones
Winand Dittrich and Matthias Biniok
Part III IT
14 Driver's Choice and System Outcomes in Congested Traffic Networks
Siegfried Weinmann, Kay W. Axhausen and Christoph Dobler
15 Development of an efficient Europe-wide e-Recruiting System (European
Recruiting 2020)
Ricardo Büttner
16 Cloud-computing in the insurance industry. An application of the theory of club
goods
Thomas Christiaans and Stefan Steden
17 Dynamic Store Procedures in Databases
Muhammed Dursun Kaya and Hasan Asil
18 The Impact of High-Tech Expenditures on Exports in Turkey: 1996-2012
Aziz Kutlar and Ali Kabasakal
19 A Fresh Look at an Old Classification Algorithm
Bernd-Jürgen Falkowski
C
on
t
en
ts
VI
Part IV Finance
20 Islamic Banking 101: Turkish Banks in Germany. Fragments of a novel
marketing concept in consideration of ethical and sustainable ways of life
Andree Elsner, Tobias Kleinert and Helena Nelson-Strebel
21 Social Impact Bounds as a financial innovation – an evolutionary economic
approach
Thomas Holtfort
22 Success Factors of Crowdfunding Projects on the Kickstarter Platform
Jörg Gutsche and Sabrina Sylla
Part V Education
23 Measuring the effectiveness and innovative capability of Bingöl University and
Atatürk University
İmran Aslan and Orhan Çınar
24 An E-conversion Project in Education System of Turkey: FATIH Project
Daha Orhan, Embiya Çelik and Arif Daş
25 Turkish academics and students in the context of skill shortages in Germany
Winand Dittrich and Natalina Reuffurth
Part VI SME
26 Risk Controlling in SMEs – a German-Turkish Perspective
Stephan Schöning and Cömert Ersen
27 Study of the obstacles and motivational factors in innovation of SMEs
Osman Demirdöğen and Farid H. Hendou
VII
C
on
t
en
ts
Part VII Miscellaneous
28 Emotional ethnic marketing. Differences between emotional advertising
effectiveness of population with Turkish background and German population in
Germany
Julia Hermann
29 Use of Information Communication Technologies in Political Communication
and Participation - with Special Reference to Turkey
Hasan E. Aktaş
30 Trust Management as an Innovative Factor of Customer Retention: The
Negotiation Behaviour in Comparison to German and Turkish Business Partners
Volker Eickenberg
... To reduce the impact of the Sino-US trade war, Jiangsu province can improve its economy by actively attracting foreign investment and expand investment in innovation. Bayraktutan et al. (2018) investigated the impact of R&D on exports of advanced and medium technology manufacturing industries to countries with different levels of economic development over the period 1996-2012. The results of the panel vector error correction model (VECM) show, short-term causality from gross fixed capital (GFC) and foreign direct investment to the export of high tech manufacturing industries. ...
... Financial risk FR Based on the international country risk guide, the financial risk index includes 5 components named external debt to GDP ratio, external debt to exports of goods and services, current account balance to exports of goods and services, exchange rate stability, net international liquidity obtained as cover months to finance imports. That is a score that any increase will indicate a reduction in financial risk According to the study by Bayraktutan et al. (2018) and Tebaldi (2011) about this index, the following relationship is expected: ...
... Based on Fig. 1, the effect of this shock is long-term, and the production of high-tech goods and their export can for a long time lead to increased exports of high-tech in developing countries. Rojas & Correa (2019), Bayraktutan et al. (2018), Kabaklarli et al. (2018), Bassey Okon and Felix Awara (2018), Bournakis and Tsoukis (2016), and Groba and Cao (2015) also points to the importance of this variable in their studies. ...
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