THE RELATIONSH？P BETWEEN R-D EXPENDITURES AND ECONOMIC GROWTH: PANEL DATA ANALYSIS FOR THE OECD COUNTRIES

In endogenously growth theories, the relationship between R-D expenditure and economic growth that was developed by Romer, Grossman-Helpman and Aghion-Howitt, has directed a lot of studies nowadays. Direction of this relationship has begun to be discussed in recent studies. Technology and innovation causes increase of productivity and prosperity in the longrun. This increases economic growth. Multiple countries which provide competitive power in science and technology and product technology and information based products, are inside the developed countries today. In this study, the relationship between R-D expenditures and economic growth was tested with panel data analysis for the 32 OECD countries. In this context, to test the data’s stability, we made Levin-Lin and Chu (LLC) Panel Unit Root Test. After that, we made Panel Granger Causalitytests. In the conclusion of the analysis it has been reached that there is a one-sided causal relation from economic growth to R-D expenditures. On the other hand there is no causal relation from R-D expenditures to economic growth