The Effect of Foreign Direct Investments on R&D Activities: An Empirical Review


SEÇİLMİŞ N., Konu A., Akar P. G.

MALIYE DERGISI, no.177, pp.28-39, 2019 (Peer-Reviewed Journal) identifier

  • Publication Type: Article / Review
  • Publication Date: 2019
  • Journal Name: MALIYE DERGISI
  • Journal Indexes: Emerging Sources Citation Index, TR DİZİN (ULAKBİM)
  • Page Numbers: pp.28-39
  • Keywords: R&D, Foreign Direct Investment, Common Correlated Effects, Transition Economies, INNOVATION, FDI

Abstract

Since ensuring sustainable growth in today's economic environment is possible through research and development (R&D) activities, countries attach great importance to innovation studies. As one of the factors affecting R&D intensity, foreign direct investment (FDI) is thought to contribute to the host countries through product and technology, qualified employees, and by creating an incentive effect on R&D. In this context, it is aimed to measure the effect of FDI on R&D in this study. In order to measure this effect, the data of 11 EU member transition economies for 1999-2016 were analyzed by Pesaran (2006) Common Correlated Effects (CCE) method and there was no evidence that FDI had a positive effect on R&D intensity.