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

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.