The relationship between high-technology exports, patent and economic growth in Turkey (1990-2015)

Abstract

Purpose- Today technology ise one of the main driving force of economic growth. Indicators as high-technology exports and patent show the progress of technological development of economies. In this study evaluation of the relationship between high-technology exports, patent and economic growth in Turkey was aimed. Methodology- The relationship between high-technology exports, patent and economic growth in Turkey have been investigated for 1990-2015 period. The stationary of variables have been tested by Augmented Dickey-Fuller (ADF) test, the causality relationship between variables have been investigated by Vector Autoregressive (VAR)Granger Causality test. For long term relationship Johansen Cointegration test and Vector Error Correction (VEC) Granger Causality test have been conducted respectively. Findings- Study results showed a causality relationship from both high-technology exports and patent to economic growth. A long term relationship has been identified by Johansen Cointegration test and one way causality relationship has been also found from both high-technology exports and patent to economic growth in long term. Conclusion- The study results showed that both high-technology exports and patent accelerate economic growth in short and long term. In Turkey policies should be establish in order to support the production and exportation of high-technology products and to increase patent applications.