Abstract:

It is of great importance that countries make technological investments and turn to high-tech product exports in order to competitive superiority in international trade. In this regard, it is necessary to identify the impact of the level of technological development on exports. The Economic Complexity Index measures the information intensity and productive output of an economy, taking into account the information intensity of the products a country exports. The economic complexity index, which shows the information intensity in exports, shows both the technological intensity in exports of countries and the diversity of products. In the framework of the study, the relationship of the economic complexity index that shows the competitive superiority of the countries in international trade with technological development, high-tech product exports and capital investments has been analyzed for Turkey. The Johansen and Gregory-Hansen integration tests found a long-term relationship between the economic complexity index and high-tech product exports, domestic patent applications and fixed capital investments. Then the long-term ratio was estimated and causality tests were performed and the relationship between the variables was revealed. Causal analysis has shown that there is a two-way causal relationship between the economic complexity index, high-tech product exports and domestic patent applications. However, it has been revealed that there is a one-way causal relationship from gross fixed capital investments to the economic complexity index, high-tech product exports and domestic patent applications. Keywords: Economic Complexity Index, High-Tech Product Export, Technological Development, Gregory-Hansen Integration, Granger Cause. JEL classification: F10, O11, O14, O30.

Abstract:

Determining sectors invested in is greatly important for countries to gain competitive advantages in international trade.. In this direction, it is beneficial for countries to reveal the effects of the level of technological development on exports. The economic complexity index measures the density of information and the productive output of an economy by considering the knowledge intensity of products that a country exports. The economic complexity index, which shows the intensity of information in exports, reveals both the technological density and the product diversity of countries' exports. In the scope of study, the relationships between high technology exports, technological developments, capital formation and the economic complexity index that reveal the competitive advantage in international trade for Turkey has been analyzed. As a result of Johansen and Gregory-Hansen cointegration tests, long-term relationships between economic complexity index, high-tech product exports, domestic patent applications and fixed capital investments have been determined. Then, long-term coefficients and causality relationships among the variables have been estimated. As a result of causality analysis, bidirectional causality relationship between economic complexity index, high-tech product exports and resident patent applications is seen. On the other hand, unidirectional causality relationships from gross fixed capital investments to economic complexity index, high-tech product exports and resident patent applications are determined. Key Words: Economic Complexity Index, High-Technology Export, Technological Development, Gregory-Hansen Cointegration, Granger Causality.             JEL Classification: F10, O11, O14, O30.

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