Abstract
As an important dynamic of economic growth in the literature, technological progress is addressed in the study in the context of political and financial stability channels. In this context, the aim of the study is to determine the relationship between effects of technological progress on economic growth and political and financial stability concepts. The study for Turkish economy is based on data of 1984-2014 period and technological progress variable is considered as advanced technology export. As a result of the study, the obtained results of causality analysis showed that political and financial stability are important channels in technological progress and economic growth relation.
Highlights
This approach, supported by Lucas (1988), Romer (1989), Grossman and Helpman (1991), Aghion and Howit (1992), argues that investments in technological progress will increase economic growth and countries/firms that have technology will gain a significant competitive advantage in the post-1980 period
According to the results of the causality analysis conducted within the scope of the study, it is understood that the technological progress which is detected to be in a reciprocal interaction with political stability contributes to economic growth through this factor
The results of variance research support the results achieved by the causality analysis with the fact that the changes in the exports of high technology are explained by the political stability to the greatest extent and correspondingly, the changes in the political stability are explained by high technology exports to the greatest extent
Summary
This approach, supported by Lucas (1988), Romer (1989), Grossman and Helpman (1991), Aghion and Howit (1992), argues that investments in technological progress will increase economic growth and countries/firms that have technology will gain a significant competitive advantage in the post-1980 period. Posner (1961), who determined that technological progress and production of high-tech products would increase the country's exports, suggests that countries to increase their high-tech production, that means the speed of technological progress increases the potential for new product production and in this case the countries / firms that are producing the technology have comparative advantage in the market In this process that is called technological gap, Posner (1961) suggests that costs are an important element in the innovative process and the innovation realized is spreading in the learning process, the fact that the country has comparative advantage is heavily dependent on the factor it has. Time is needed for creation of scale economies and expansion of innovation
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