The Relationship Between R&D Expenditures and Economic Growth ın OECD Countries With Different Causality Tests

Abstract

In this chapter, the relationship between research and development (R&D) expenditures and economic growth was investigated with both Emirmahmutoğlu and Köse Causality test and the Dimitrescu and Hurlin Panel Causality test based on Rolling Windows Regression for the selected 19 OECD member countries for the period 1996-2015. The results concluded that for all panel there is a causality from economic growth to R&D expenditures. In this study, the relationship between variables was investigated using different mathematical techniques like rolling windows. According to the results of the Dimitrescu and Hurlin Panel Causality Test based on Rolling Window Regression, which is applied differently from other studies in the literature, there was a causality from economic growth to R&D expenditures in 2010. In 2011, there was causality from R&D expenditures to economic growth for all panels.