You are here

An Analysis of the Relationship Between Innovation and Economic Growth: The Case of Emerging Markets

Journal Name:

Publication Year:

Abstract (2. Language): 
Innovation is sweeping the globe at breakneck speed, and emerging markets are where tremendous growth and opportunity reside for the present and future. Although innovation is widely viewed as the key to economic growth, there is no consensus on what makes some industries and countries more "innovative" than others, or exactly how innovations fuel an economy. The purpose of this study is to check whether innovation is a key factor in the economic growth of emerging countries. The empirical analysis is performed on 13 emerging economies, using the time series annual data for the period of 1970-2014. Unit root, Engle and Granger co-integration, Vector Error Correction Model (VECM) and Vector Autoregressive (VAR) tests were used to check out the relationship between innovation and economic growth. The result of the analysis indicates that only 4 of the 13 countries’ data confirms the hypothesis that innovation is the main factor of growth in the emerging economies.



Akçomak, Semih and Baster Weel (2006). "Social Capital, Innovation and Growth: Evidence from
Europe", Maastricht Economic and Social Research and Training Centre on Innovation and
Technology, UNU-MERIT Working Papers.
Barro, Robert and Xavier Sala-i-Martin, (2004), "Economic Growth ", Second Edition.
Barro, Robert J. (1991). "Economic Growth in a Cross Section of Countries", The Quarterly Journal of
Economics, The MIT Press, Vol. 106, No. 2. pp. 407-443
Cameron, Gavin (1998). "Innovation and Growth: A Survey of the Empirical Evidence", Nuffield
College, Oxford, July 1998.
Central Bank of Russian Federation, (2016). “Banking Supervision Report in 2015”,
Çetin Murat, (2013). "The Hypothesis of Innovation-Based Economic Growth: A Causal
Relationship", International Journal of Economic and Administrative Studies.
CIA, World Factbook, (2016), "South Asia: India",
Dewey, John (1916). "Democracy and Education: An Introduction to the Philosophy of Education",
Columbia University, New York City, August, 1916.
Graceffo and Antonio (2011). "BRIC Becomes BRICS: Changes on the Geopolitical Chessboard",
Foreign Policy Journal. Retrieved 14 April 2011.
Herbst, Jeffrey and Mills, Greg (2015). "How South Africa Works: And Must Do Better", Pan
Macmillian South Africa.
IMF, (2016) "Subdued Demand, Diminished Prospects",
IMF, Hulya Ulku, (2004) " R&D, Innovation, and Economic Growth: An Empirical Analysis",IMF
Working Paper, WP/04/185
Lange, B. (2007). The Stock Market Crash of 1929: The End of Prosperity. Infobase Publishing.
LeBel, Phillip (2008). "The Role of Creative Innovation in Economic Growth: Some International
Comparisons", School of Business, Department of Economics and Finance, Montclair State
University, United States, Journal of Asian Economics.
Mankiw Gregory, Romer David and Weil, David (1992). “A Contribution To The Empirics Of
Economic Growth” Harvard College and the Massachusetts Institute of Technology, The
Quarterly Journal of Economics, May 1992.
Nathan Rosenberg, (2004). “Innovation and Economic Growth”, Stanford University
OECD, (2006). " Innovation and Growth in Tourism ", OECD Publishing, 6 June 2006
OECD, (2014). "Economic Surveys TURKEY", OECD, July 2014 Overview
O'Sullivan, David and Lawrence Dooley (2008). Applying Innovation, SAGE Publications, 23 Haziran
Romer, Paul M. (1986). “Increasing Returns and Long-Run Growth”, The Journal of Political
Economy, University of Chicago Press, Vol. 94, No. 5. (Oct., 1986)
Romer, Paul M. (1994). “The Origins of Endogeneous Growth”, The Journal of Economic
Perspectives, Volume 8, Issue 1 (winter 1994)
Saleh Kusmadi, (1997). "The Measurement of Gross Domestic Fixed Capital Formation in Indonesia",
Central Bureau of Statistics Jakarta, March 1997.
F.PEHLİVANOĞLU ve M.TANGA / An Analysis of the Relationship Between Innovation and Economic Growth: The Case of…
Siyaset, Ekonomi ve Yönetim Araştırmaları Dergisi, Temmuz 2017, Cilt: 5, Sayı: 3, ss.165-181 181
Shawn Grimsley, (2016), "Definition of Foreign Direct Investment",
Sianesi B and Reenen J .V. (2003). "The Return to Education: Macroeconomics", Journal of Economic
Surveys, Vol.17, February 2003.
UNESCO, (2014). "BRICS: Building Education for the Future ", Published in 2014 by the United
Nations Educational, Scientific and Cultural Organization
World Bank (2016). "Thailand", World Bank 2014 Overview
World Bank (2016). "World Development Indicators, 2011
World Intellectual Property Organization (2015). "Patents: Frequently Asked Questions", World
Intellectual Property Organization Retrieved 24 June 2015.

Thank you for copying data from