The effect of research and development (R D) expenditures on export: evidence from a panel of selected OECD countries

Abstract

Purpose- RD namely, the Levin, Li and Chu; Im, Pesaran and Shin W-stat; Fisher-ADF and Fisher-PP. Panel FMOLS and DOLS estimators were used to obtain long run coefficients after the cointegration relation was detected. Findings- As a result of Pedroni and Kao cointegration test, it has been found that there is a long term relationship between R & D expenditures and exports. Both Panel FMOLS and Panel DOLS test results show that the sign of R & D expenditures is positively and statistically significant. According to the Panel FMOLS test results, a 1% increase in R & D expenditures leads to a 0.45% increase in exports. Similarly, according to Panel DOLS test results, 1% increase in R & D expenditures increases exports by 0.43%. Conclusion- The results showed that the effect of R & D expenditures on exports is positive. Results obtained in the study are consistent with existing findings in the literature.