Abstract:

This study aims to investigate the impact of R&D expenditures, energy consumption, and human capital on regional economic performance in level 1 regions in Turkey, using a random coefficient panel model. Annual data for the period 2010-2021 for level 1 regions were used. Regional gross domestic product, which is representative of regional economic performance, was used as the dependent variable. Regional electricity consumption, R&D expenditures, and the proportion of the workforce with higher education were used as independent variables. The study used panel data analysis methods, including horizontal panel dependency, panel unit root test, homogeneity, and random coefficient panel. According to the panel results of the random coefficient panel data model, all independent variables have a statistically significant and positive effect on the regional gross domestic product at a 1% level of significance. The cross-sectional results of the study indicate that R&D expenditures have a positive and significant effect on regional gross domestic product in many regions.

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