Effects of R&D Expenditures on High Technology Exports, Balance of Foreign Trade and Economic Growth

In this study, effects of R&D expenditures on high technology exports, information-communication technology exports, total exports and economic growth as well as the effects of high technology exports on the balance of foreign trade were analyzed for 11 developing Asian countries by using data of 1996-2012 period with panel data analysis which consider cross sectional dependency. Stationary of the series was tested by means of Hadri-Kuruzomi (2012) panel unit root test, causality relationship was tested via Dumitrescu-Hurlin (2012) test, the presence of cointegration relationship was tested with Westerlung-Edgerton (2007) LM bootstrap test, cointegration coefficients were estimated with Eberhardt-Bond (2009) Panel AMG method. As a result of the analysis, it has been determined that an increase by 1% in R&D expenditures raised the high technology export by 6.5%, the information-communication technology exports by 0.6% and the economic growth by 0.43%.