THE EFFECT OF R&D EXPENDITURES ON ECONOMIC GROWTH AND TRADE BALANCE: EVIDENCE FROM G-20 COUNTRIES

Nowadays, there is intense competition in international markets. In this case, the main targets of the countries are sustainable growth and the superiority of foreign trade. Innovation and R&D activities are the main factors that countries need to achieve these targets. By making it possible to produce new products and services, R&D expenditures provide long term growth and competitive advantages for countries. The aim of this study is to investigate the importance of the impact of the R&D expenditures - which show on increasing scale day by day- on the export, economic growth for G-20 countries. For this purpose, the impact of R&G expenditure on these two macro criteria of the G-20 countries was investigated by panel data analysis. According to the results of the research, the increase in R & D expenditures has a positive and significant effect on economic growth and exports