Türkiye'de Finansal Gelişmenin İnovasyon Faaliyetine Etkisinin İncelenmesi: ARDL Yaklaşımından Kanıtlar.

ŞEYRANLIOĞLU, Onur; ÇİLEK, Arif

The aim of this study is to analyse the effect of financial development on innovation activity with annual data for the period 1984-2021 in Türkiye. For this purpose, the total number of patents representing the innovation activity and the volume of domestic credit extended by banks to the private sector (% of GDP) representing financial development are used in the study by following the relevant literature. Education expenditures, foreign trade volume and foreign direct capital investments, which are thought to affect innovation activity, are also used as control variables. The stationarity of the variables in the study was determined by Augmented Dickey and Fuller (1979, 1981) and Lee and Strazicich (2003) unit root tests. The long-run and short-run relationships of the regression model of the research are handled by ARDL bounds testing approach. A long-run relationship was found in the model established in the research. The findings show that a 1% increase in financial development increases innovation activity by approximately 0.75%. In the long-run, improvements in financial development are positively reflected on innovation activity, while in the short-run they are negatively reflected. Additionally, in the long run, increases in education expenditures and trade volume positively impact innovation activities, while the effect of foreign direct investment is statistically insignificant.

FOREIGN investments; BANKING industry; INTERNATIONAL trade; BANK loans; PRIVATE banks

Igdir University Journal of Social Sciences / Iğdır Üniversitesi Sosyal Bilimler Dergisi, 2024, Issue 37, p353

2147-5717

Academic Journal

10.54600/igdirsosbilder.1496646