RESEARCH AND DEVELOPMENT ACTIVITIES AND ECONOMIC GROWTH RELATIONSHIP AMONG GIPPS COUNTRIES IN THE 2008 GLOBAL ECONOMIC CRISIS

Abstract

Purpose of the study is to investigate the total ratio of high technology export, patent applications and research and development (R&D) spending to state expenditures and their ratio to national incomes as well as their relationship to economic growth levels among Greece, Ireland, Italy, Portugal and Spain that are known as the GIPPS countries. The study uses annual data between the years 1995 to 2016. Following the examination of dependency across cross sections, unit root test was applied. Four variables that were considered to be effective over economic growth levels were found significant and effective. According to the results, two most effective variables over economic growth levels were found to be the ratio of R&D spending to national income and high technology export based on co efficiency magnitude. The share of R&D in total state expenditure and patent applications were found to be less effective. Obtained results also put forward that all independent variables indicated a positive significant relationship over economic growth levels.