This article provides an empirical analysis of the relationship between research and development (R&D) expenditures and economic growth, and determines whether this relationship differs with respect to the degree of development. In this regard, the study utilises data from 52 countries from 1996 to 2010 and employs a dynamic panel data model. The research finds that R&D expenditure has a positive and significant effect on economic growth for all countries in the long run, which is consistent with the relevant literature. For developing countries, the effect is weak in the short run but strong in the long run, as expected. The study adds new empirical evidence to the literature. JEL Classifications: E24, O11, O32, O47
Purpose The purpose of this paper is to provide new empirical evidence on the relationship between social expenditure and poverty in Turkey. Design/methodology/approach There are voluminous studies in the literature and many of which contain condradictory results. The authors use panel error correction models and employ Turkish statistical territorial units data (26 regions) covering the period 2004-2011 in the analysis. Findings The authors have found that in the short run, there is a negative relationship between social expenditure and poverty, as expected. In the long run, however, there exists a positive relation between them. The authors utilize expenditure on education as one component of social expenditure, and the authors obtain a negative relationship between education expenditure and poverty, both in the short run and in the long run. Social implications Poverty is an important social problem that more studies on this subject should examine various aspects and find policies to alleviate it. Originality/value Literature on poverty and social spending are growing and their results are contradictory. However, this paper clearly and significantly provides new empirical evidence on the effect of social spending on reducing poverty using Turkish data. This kind of study is hardly found for developing countries like Turkey. It contributes to the literature.
The primary purpose of this paper is to find out the relationship between real government expenditures and real gross domestic product (GDP) for three countries of the South Caucasus namely, Azerbaijan, Armenia, and Georgia. The relationship between the variables is essential for policy formation for these countries due to their transition to market economy. There are two main hypotheses related to real government expenditures and growth. The Wagner’s hypothesis argues that the growth of an economy leads to more government spending while Keynes’s hypothesis proposes that government expenditures feed higher economic growth. From policy perspectives, the Keynesian view gives a dominant role in government intervention for higher growth while Wagner view gives just a passive role to the government in economic policy. This paper is designed to investigate these hypotheses by using econometric panel techniques. The analysis covers the years 1990-2016. According to our empirical results, there is a mutually positive relationship between real government expenditures and economic growth in the South Caucasus. At the same time, we also find short and long-term bidirectional causality. These results confirm each other and in line with the existing literature. Our study contributes to the literature as filling the gap by studying the South Caucasus countries.
This paper estimates private and social returns on investment in education in Turkey, by level of educa¬tion and by higher education program, using the 2008-2016 Household Labor Force Survey and Income and Living Conditions Survey panel datasets. The paper uses panel econometrics with the Hausman-Tay¬lor and instrumental variable methods dealing with the endogeneity and unobserved heterogeneity problems. The private returns on investment in higher education tend to be higher as compared to the private returns on investment in non-tertiary education. The results indicate that the private returns on investment from various higher education programs are signifcantly different across various higher ed¬ucation programs. Based on the empirical fndings, a number of policy recommendations are developed.
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