Abstract:

The aim of this study is to determine the effect of R&D activities in Turkey on Turkey's foreign trade performance. In this context, the relationship between Turkey's annual data for the period of 1990-2019 and R&D expenditures and imports and exports was investigated by time series analysis method. In the study, the unit root test was tested with the Lee Strazicich LM unit root test as well as the classical ADF and PP tests. As a result of these tests, it was determined that the R&D variable was stationary around the breaks, while the import and export variables became stationary at the first difference. The cointegration and coefficient estimates between the variables were investigated using the ARDL bounds test method, which allows analysis at different levels of stationarity. According to the analysis results obtained, it has been determined that R&D expenditures and imports and exports are cointegrated. In addition, as a result of the long and short term coefficients calculated, it was determined that R&D expenditures affected imports and exports positively and significantly in the long term. In the short term, it has been determined that R&D expenditures affect exports positively and imports negatively. Both of these effects were found to be statistically significant. In addition, it has been determined that the effect of R&D expenditures on exports is greater than the effect on imports.

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