KNOWLEDGE ECONOMY AND FOREIGN TRADE AFFAIRS: THE INSTANCE OF EMERGING ECONOMIES

World economy has been witnessing a swift shift from industrial economy to knowledge economy in recent years. In this sense, knowledge is regarded as a new factor of production. It has gradually gained a significant position that intensifies economic activity. Moreover, the liberalisation of world trade has expanded the importance of foreign trade over time. This paper analyses the impact of knowledge economy on foreign trade in light of panel data analysing emerging economies. In order for the paper to examine the effect, the study is based on R&D activities, patents and scientific journals that signal for knowledge economy. Additionally, the paper goes to analyse the impact of this datecollected from R&D activities, patents and scientific journals upon foreign economy. It sets five various economic models upon emerging economies by taking the variables of information economy in different period of times into account and data constraint. As results of the analysis, it has been observed that in the long run the information factor has been reduced external dependence in the emerging economies and increased competition power