THE EFFECT OF R&D EXPENDITURES ON HIGH TECHNOLOGY EXPORT IN BRICS-T COUNTRIES

Abstract

It is known that technological innovations are extremely important for countries to achieve their economic growth and economic development goals. Technological innovations that shape the long-term performance of economic growth are considered as one of the main determinants of high and sustainable growth, especially for underdeveloped and developing countries. As a matter of fact, countries need to allocate more resources for R&D investments for the production of high value-added technological products.

In this study, the effect of R&D expenditures on high technology export in BRICS-T (Brazil, Russian Federation, India, China, South Africa, and Turkey) countries for the period 1996-2016 has been investigated using panel data methods. In the model; While high technology exports were determined as the dependent variable, R&D expenditures, consumer price index, and nominal exchange rates were defined as explanatory variables. Stata 14.0 package program was used in the analysis. According to the results of the fixed effect estimator, R&D expenditures and exchange rates have a positive and significant effect on high-technology exports, while the consumer price index has a negative and significant effect. According to the results obtained; in order to increase their high-tech exports, the countries should allocate more resources to R&D expenditures and stabilize the exchange rate, goods, and service prices in the name of competition.